George Bush latest zinger is a doozy. In a move designed purely to placate leftists and kowtow to the ignorance of the American public, the president called for an investigation into price gouging and collusion among the nation’s oil companies. The president has been largely blamed by the left for the rise in prices at the gas pump, an act that in and of itself demonstrates the overwhelming stupidity of many American politicians and their constituents. Bush is no more responsible for high gas prices than Clinton was responsible for low prices during the mid-90s.

During the Clinton era, worldwide demand for petroleum was down. Many Asian and European countries were in recession and output was up, the inexorable logic of events would therefore dictate that prices would decline as supply increased, while demand decreased. Today the opposite is true, nations like China and India are growing by leaps and bounds, by most estimates both are growing at an annual rate of over 10%, This as there is increased volatility in oil rich regions including Iran and Nigeria, not to mention that US demand continues to far outpace supply. This has led to a continued rise in prices. Since most Americans and the hack politicians they elect know nothing of economics, this reality is lost in the rush to blame someone for the price of gasoline. Thus the left has chosen a convenient target, the president, the same individual they blame for all their troubles from causing Hurricane Katrina to Flu Vaccine shortages, even for the death of Christopher Reeve.

The president, rather than attempting to educate the American public (perhaps he is not up to the challenge) choose instead to join the fray calling for a full-scale investigation of gas prices to insure oil companies are not attempting to fix the price of gasoline a premise, which is quite simply devoid of logic. During the president’s speech yesterday, he also introduced other measures to lower the price of gas, including a halt to deposits in the strategic oil reserve (in order to increase supply). While an increase in supply will reduce prices, the amount is negligible. The president also called for waivers on environmental regulations concerning gasoline blends.

The president’s dishwatery speech does not begin to address the major issues concerning America’s 3rd energy crisis in as many decades, but only serves the left in the one track minded anti-free market socialist agenda. While Chuck Schumer and company call on the president to “get tough on Big Oil,” they do nothing to address the real issue. Schumer even called for a break up of big oil, implying there was a monopoly in the gasoline industry.

If anything an AT&T style breakup of the country’s major oil companies would likely increase prices given overlapping bureaucracies and diminished economies of scale, something Schumer and his democratic compatriots could not explain if their lives depended on it. Steps must be taken to encourage increased domestic production, while also encouraging research, development and consumption of petroleum alternatives. Indeed, the blindness of politicians and the gullibility of the population at large highlights the unabashed failure and disinterest of education in America.
http://www.latimes.com/business/la-fi-industry26apr26,0,3662010.story?coll=la-home-headlines