Democrats swept into power in 2006 on promises of lower gas prices. High costs, they argued, were hurting the working poor, one of the constituencies they were courting in their move toward Populism. See, unlike our tax code, gas prices act regressively and have a particular impact on rural areas where driving cannot be supplanted by public transportation.
We thought things were bad when gas prices were $2.33 for a gallon when the 110th Congress gaveled into session. Today, the national average is over $3.53 and rising. Why haven’t Democrats done anything?
They’ll never admit this - and they hope that we’ll all have goldfish memories - but high gas prices are just what Doctor Democrat has been ordering for years. See, while the working poor are important because they vote, environmentalists are even more important because they donate. A lot.
And for years, environmentalists have been complaining about the low price of gas. They complain because low gas prices prevent the market from adopting more expensive alternatives. They complain because low gas prices make gas-guzzling SUVs economically viable. They complain because low gas prices don’t account for what they call the environmental footprint of fossil fuels. And they still think gas prices are too high.
Economists feel that gasoline prices would need to double and remain there (i.e. $7-8/gallon) before behavior would really change, and advocate a gas tax to get us there. The externalities (accidents, smog, global warming, etc.) are simply not reflected in the current price of gasoline.
They have proposed carbon taxes, mileage taxes, gas taxes, energy taxes, congestion taxes and just about any other mechanism they could think up to make the price of a gallon of gasoline higher. The price we’re paying at the pump is the result of years of their efforts to prevent us from tapping our own energy supplies.
So when Americans wonder about the plan to lower gas prices, I am skeptical whether the Democrats would enact such a plan even if they had one. Given their record of fighting for higher gas prices, their promises in 2006 seemed hollow to me.
