Tuesday, April 29, 2008

Double Talk On Gas From John McCain

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Ever since he first declared his plan for a "suspension of the federal gas tax from Memorial Day to Labor Day," John McCain has been harshly criticized--and rightly so.

Just like his plan to "freeze" spending ignores the need for spending cuts, McCain's plan to "suspend" the Federal gas tax is an attempt to pander to voters while ignoring the causes of the serious energy issue which we now face.

Suspending the Federal gas tax of 18 cents per gallon does not guarantee that any savings will reach consumers. The plan is based on the naive assumption that oil companies will turn good samaritan and lower prices for consumers, something that they have shown little enthusiasm for, especially as Shell and BP announced record first-quarter profits today, with Exxon Mobil expected to follow shortly.

In fact, Sen. McCain's plan more than likely would cause prices to rise for consumers to rise, as the brief decline would ensure increased demand, which, as anybody knows, would mean a decrease in supply, naturally leading to an increase in price.

For an substantial decrease in price, there needs to be an increase in supply. During the summer months there is always increase in demand and price, due to increased travel. McCain's temporary price reduction, miniscule as it is, would increase demand during a time where demand is already high, thus leading to an even larger price increase than normal.

McCain is joined in "gas holiday" plan by none other than Senator Hillary Clinton, who is in faovr of "Imposing a windfall profits tax on oil companies and using the money to suspend the gas tax for the peak summer months."

Teaming up with democrats to push measures that hurt Americans is nothing new for McCain, who brought the wrath of talk-radio upon himself when he partnered twice with Ted Kennedy to produce the "McCain-Kennedy" immigration bill of long and unhappy memory.

On the matter of the gas holiday John McCain shows more of the same irresponsibility. Naturally, he has not mentioned any concrete way to pay for it, beyond vague references that it will pay for itself, which, ironically, was also a reason used to push for the war in Iraq.

John McCain's lack of energy solutions is truly frightening for a man that could be the next President. His quick fix plan would raise demand when it is already high, cause prices to rise in the summer months, a time, when prices are already high, not to mention the fact that consumers would be subject to a nasty price hike when their gas price "vacation" expires after labor day.

However, McCain appears to operate under the assumption that oil companies can be trusted implicitly to look after the interests of ordinary Americans even as prices at the pump soar along with their profits.

One factor that has completely ignored here, though, is the need for alternative energy. McCain's plan would only help aggrevate a crippling addiction without doing anything to helpe America become energy independent.

Of course, energy independence is hardly something to be expected from McCain who has taken almost $500,000 dollars from oil company executives since entering the race, including $45,000 last month. Helping out his financers with an energy plan that would increase their profits while increasing gas prices for consumers is entirely befitting of a man who has spent the last thirty years in Washington who calls our addiction to oil a "national security issue" while taking money and proposing policies which profit those who stand to gain by our continuing dependance.

5 comments:

Gambit said...

Like John McCain himself said this primary season, he knows nothing about the economy... thus should not be making any statements of giving us some sort of "band aid" to our gunshot wound, that is our oil addiction and reliance on fossil fuels.

The funny part is, he is in no position to be making any recommendations right now. Even as a Senator (whom missed over half his votes/meetings), he is practically powerless. His recommendation to give us a temporary federal tax break on gas is laughable. What's even more laughable is, the fact that Hillary Clinton is copying him and is also calling for a "vacation" of the federal tax on gas.

The tax that actually hurts consumers is the STATE tax on gasoline, NOT the federal tax. And that's not even the main problem. The main problem is that we need to get our country off our reliance and dependence on oil... giving countries in the Middle East unimaginable wealth; countries that at best, dislike us. At worst, hate and want to kill all Americans.

Anonymous said...

Who's naive? An 18 cent halt of the federal gas tax would result in an 18 cent reduction at the pump. Federal gas taxes are colected at the pump not from the supplier. How old are you? Second if you increase taxes on the producers, they like every other business in the world, will pass it on to the consumer. Higher gas prices will be the result. Third, most people with 401k's have a major oil company in thier portfolio, or should. Hurting the oil companies will hurt a lot of average Joe's.

Reggie said...

An 18 cent price reduction would cause demand to go up, thus raising prices than if the reduction had never occurred. That, combined with the second price raise that would occur when the gas "holiday" ran out, would be higher gas bills for consumers and more profits for oil companies, hardly a good solution.

Loved the blog post, btw.

Anonymous said...

I dont have a problem with gas. I know other people do ...
I Do have a problem with the double talk of the typical politician who really likes to skirt the issues...I am sure most others can relate to those feelings, although the American people have tolerated it long enough.

Anonymous said...

Try as i might i could hunt all my life...I could never find another as wise as my mdh (my dear hubby. We have been married about 13 years...lost count actually). It has been subsantilly significant , but the thing he made me realize is we all have been hard pressed by the economy.
(MY HUBBY IS AN ECONOMIST OF SORTS)
As he demonstrated to me: have not only an economy of gas, but other commodities , as well. Through it all I have been able to bridge the gaps (in income). Middle class America need to deal with the mundane realities that the ecomomy is not just about gas prices but infiltrates the infrastructures...the very foundation.

The goverment is oh so cute...thinking they have it figured out ? (think again). There is a huge difference between the status quo and the progressive American government. We the people realize this and just keep marching...hoping for a brighter economic future...(smiling). Well tomorrow is another day to be a day older and wiser just like my hubby says...! Pray God to bless us through the ages.