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The politics of the gas pump
Staff Reporter | Posted May 1, 2008 11:38 AM
When President Bill Clinton took office in January 1993, the average price of gasoline was $1.05 a gallon. By the time he left office in January 2001, the price had risen to $1.45 a gallon, a 37 percent increase over the course of eight years. That may seem like a steep hike, until you consider what happened during the Bush Administration.
During George Bush's term in office, the average price of regular gasoline has more than doubled from $1.45 a gallon in 2001 to $3.56 a gallon last week, according to the Department of Energy. And the price is expected to go higher, with some analysts expecting gas prices to reach $4 a gallon this summer.
What does that mean to the consumer? In 2001, it cost about $29 to fill up a 20 gallon tank. Today it would cost $71 to fill up the same tank.
For the commuter who fills up that tank every week, the cost of gas has risen from $1500/year to almost $4,000/year, a $2,500 annual increase in just 7 years.
Given the skyrocketing prices, it's no wonder that voters say that gas prices, and their effects on the economy, are a top concern in the presidential election. Forty two percent of Americans think the gas situation is a "crisis," according to a new Gallup poll released today. And 51 percent think gas prices are a "major problem." When the two numbers are combined, that means 93 percent of Americans are worried about rising fuel costs.
What causes high gas prices?
There are plenty of explanations for the increase in gas prices. Some point to increases in demand in China, India, the Middle East and Russia that have affected the global marketplace. Others point to political instability in the oil-producing Middle East in the context of two U.S. wars in Iraq and Afghanistan. Some blame investors speculating on commodities. While others fault the Democrats who took over Congress in 2006 for not doing enough on energy policy.
Whatever the cause, Americans aren't happy about it and aren't used to paying so much at the pump. But in Europe the prices are even higher. Drivers in the UK, for example, shell out more than $8 (U.S.) per gallon when they go the gas station. Those prices would be staggering to American drivers, but Europeans were paying more than $4 (U.S.) a gallon for gas way back in 2001. That's more than Americans still pay today.
The rise in fuel prices has also caused some suspicion that the two oilmen in the White House, George Bush and Dick Cheney, might have contributed to the steep price hike. Oil was trading at $23 a barrel in 2001. Today it's nearly $120 a barrel, a six-fold increase in 7 years.
Bush-Cheney energy policy
Democrats fault President Bush for not doing enough to create an energy policy that discourages consumption, and Democratic presidential candidate Barack Obama has faulted the Administration for taking sides against the consumer.
Noting that "Exxon Mobil reported more than $10 billion in quarterly profits" the Illinois senator recently attacked Vice President Dick Cheney, who he said "met with the oil and gas companies 40 times. So is it any wonder than that the energy laws that were written were good for Exxon-Mobil but they are not good for you?"
Neither one of the three candidates wants to be too closely associated with George Bush on energy policy. Back in February, when asked by a reporter what advice he'd give to an average American who is faced with the prospect of $4/gallon gas, the President responded: "That's interesting. I hadn't heard that."
But none of the three presidential candidates has a clean record here. Senator Obama is the only presidential candidates who voted for the 2005 energy bill, which passed the Senate 74-26. At the time Obama said the bill was "far from a solution" but called it "a first step toward decreasing America's dependence on foreign oil" because it would doubles ethanol use and invest in clean coal. "I vote for this bill reluctantly today, disappointed that we have missed our opportunity to do something bolder that would have put us on the path to energy independence," Obama said.
Senators Clinton and McCain voted against the bill, and Clinton has tried to use this issue against her rival. "Obama voted for the Bush-Cheney energy bill that that put $6 billion in the pocket of big oil," says a recent Clinton campaign TV advertisement.
A gas tax holiday for the summer
But Clinton and McCain have their own weaknesses to deal with on the issue. Both candidates support a federal gas tax holiday, which would temporarily eliminate the 18.4-cent-a-gallon excise tax during the busy travel months of summer 2008. Sounds like good politics for American drivers seeking relief at the pump, but the proposal has its downside.
The summer gas tax holiday would strip $9 billion from the cash-strapped federal government and reduce the amount of money available for the federal Highway Trust Fund to rebuild roads and bridges badly in need of repair. And some critics of the proposal argue that the tax holiday would actually increase the cost of fuel by increasing demand.
Clinton and McCain have been accused of pandering to voters with the 3-month tax holiday, just in time for the election, but even some critics acknowledge that the proposal may be "smart politics [but] stupid policy."
Whether that's enough to win an election remains to be seen, but there's one point on which observers seem to agree. No matter who wins the election, gas prices are likely to remain high for the foreseeable future.
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brucito commented on The politics of the gas pump:
Taxes are what pay for the infrastructer of the country. If the gas tax is taken away even for one d... -
MLee commented on The politics of the gas pump:
I have heard many explanations on the causes of high gas prices. The only thing I know for a fact is... -
mary commented on The politics of the gas pump:
WELL YOU SEE BUSH DOESN'T HAVE TO PULL UP TO THE GAS PUMP AS WE DO SO HE WON'T FELL THE PINCH ( BOOO... -
Registered User commented on The politics of the gas pump:
Gas is only about $3.50 a gallon around here. When I was a teenager it was around $1.50 in the summe... -
Caryl S. Foster commented on The politics of the gas pump:
What is the difference between Senator Clinton's and Senator Obama's position on the issue of the Ga...
May 1, 2008 12:17 PM
Wow I cant wait to be able to tell my kids. When I was your age gas was $1.45, and then painfully come to terms with the fact that gas is now $10.87 a gallon!
Sigh....
Jesus Wept.
May 1, 2008 1:42 PM
What is the difference between Senator Clinton's and Senator Obama's position on the issue of the Gas Tax Holiday?
The answer is the same as the difference is between their fundamental philosophy as politicians: Senator Clinton is telling us what we want to hear hoping we do not really think about it while Senator Obama is telling us what we need to hear and challenging us to think about it. The Gas Tax Holiday sounds great but upon thinking about it, everyone should realize that it ain't.
But perhaps a better question is why are we waking up finding ourselves 60% dependent on foreign oil in 2008 compared to "only" being 40% dependent at the time of the 1973 Oil Embargo?
The answer to this, as in the case of many such critical issues, is that we are in this position because nothing has been done during the last 3+ decades by our "experienced Washington system politicians" in either political party to establish our energy independence. They talk about it then do nothing about it.
Same goes for establishing universal health care. And the same goes for improving our educational system so that our children can effectively compete in the global economy et cetera, et cetera. Our experienced Washington politicians tell us what we want to hear, tell us what they are going to do, go behind close doors in back room to argue their already set-in-stone positions, and emerge to tell us that one party has prevented the other party from getting anything done. Oh well, on to the next issue that will also remain unresolved.
At this point, give me someone new who is "inexperienced" as an "experienced Washington system politician" as in the same one who intends to change the old system of how our politics work in Washington. Change it by establishing a new front room transparent system so that we can see, hear, and hold our politicians in either party directly responsible and accountable for what they do and do not do at the time they are calling themselves doing it in Washington.
Lets change the existing system in Washington so we do not wake up in 2012 finding ourselves even more dependent on foreign oil, likely paying $10+ per gallon for gas, and once again and forever more asking why have we not changed.
The Real Question Is.........Are We Ready To Change?
May 1, 2008 1:46 PM
Gas is only about $3.50 a gallon around here. When I was a teenager it was around $1.50 in the summer time, but then again the average family income was about $20,000 a year as opposed to about $42,000 a year now.
May 1, 2008 3:58 PM
WELL YOU SEE BUSH DOESN'T HAVE TO PULL UP TO THE GAS PUMP AS WE DO SO HE WON'T FELL THE PINCH ( BOOOOM).
WHAT THE HECK DOES HE CARE.
May 1, 2008 4:51 PM
I have heard many explanations on the causes of high gas prices. The only thing I know for a fact is American oil companies are still making ridiculous profits off of the American people. Bush is not doing a damn thing about it. He is either too tied up with Iraq, or looking the other way to help his oilmen friends. Bush has even implied that he has just become aware of the oil price crisis.
I am a Barack Obama supporter and hate Hillary Clinton’s campaign tactics. However, if Clinton happens to win the Democratic presidential nomination and Obama’s supporters vote for John McCain or stay at home doing the November elections, Obama supporters will be hurting themselves more than they could ever hurt Clinton unless they are also millionaires.
May 2, 2008 6:45 AM
Taxes are what pay for the infrastructer of the country. If the gas tax is taken away even for one day then the tolls for bridges or tunnels is surely going to go even higher. Propery taxes will follow. The money for that type of action simply is not there. Case closed.
Tax cuts are the cruelest gimmick that the american people will eat up in a heart beat. This tax rebate check that we all just or are about to recieve is even crueler. You can not have two wars going on at the same time along with a housing crisis that sure as hell is going to have to end with a bailout and then a tax cut too. LIke it or not is simply is not possible. Or léts put it another way. It is possible but it is going to come at a trememdous price that will make a bad situation even worse.
Driving is a priveledge in most urban areas. There are very few areas in most major cities that are not serviced by some type of public transportation. I said most. I did not say all. For those of us who simply do not want to take public transportation sooner or later it is going to have to become a reality. Or you will go hungry or without cable tv paying for your stubborness.
It is NOT a necessity for most people to have to drive to work who live in these areas. It is a priviledge. That is also why taxes on gasoline went to the level that they did because people were not willing to make that trade of their cars for the bus or subway. When you factor in a combination of having to use both 5 days per week riots might break out if this were to becamse a reality. That is also why when jobs started leaving the inner cities for the suburbs the only ones that complained about it were the people who could not afford a car.
If you can come up with the monthly payment for an $80,000 Humvee or a $40,000 SUV or the $800 a month to lease either then you get no sympathy from me for having to come up with $15.00 or so more per fill up. Those of you who are more sensible and have a standard Mazda or Toyota you have my heart. At least you made the effort to live withing your means. Or should I say OUR means.