Why democrats love four dollar gas now and will hate it if they win the presidency.
Democrats have typically been viewed as stronger on economy and when the economy is hurting they gain political power. With gas at four dollars a gallon and moving higher, the economy is tanking. Everything from the daily commute to transportation of groceries costs more and is putting a damper on the American Consumer. With the price of energy on the rise and the people unhappy with the current administration, the Democrats star is on the rise. The unfortunate truth is that while the Democrats benefit from the high cost of energy they have no real solutions.
The price of gas and oil is causing a real drag on the economy. Consumers are spending more on fuel and energy so have less left to buy optional products. With interest rates likely to rise and energy costs rising or staying flat the American people are having more trouble stretching the paycheck from week to week.
The Democrats rightly or wrongly are viewed as better able to deal with domestic economy issues. They will provide tax relief to lower income families and probably socialize some services. They will attempt to punish industries that profit from high energy prices and invest some money in alternative energy.
The problem with the current situation is that the Democrats really have no solution to the high cost of oil. Any of the possible solutions that would be palatable to the party are unlikely to have any real impact at any time in the near future. Investing in renewable power generation and efficiency will not have an immediate impact. Increasing the taxes on the oil companies will have the effect of either increasing the price of gas or causing the one sector of the economy that is doing well to fail. Many Democrats and most individuals fail to realize that punishing publicly traded companies is detrimental to the economy and people's personal fortunes, as most 401k and retirement plans will have some exposure to the oil industry.
The green part of the Democratic party actually love the fact that gas is so high. They truly believe that anything to reduce the use of gas in America is a good thing because they believe that it will help the environment. Most of this wing of the party believe that personal transportation should be abandoned and that cities should be more compact with mass transit, large houses are bad, and the high standard of living that Americans enjoy in relation to the rest of the world is evil. They will reject any solution that does not change the lifestyle of the majority of Americans. Electric cars are rejected for bikes, mass transit, and walking. If you live in a suburb, you are just wrong, you should live in an apartment or condo where space is used more efficiently and you have less distance to travel for necessities. Even Obama has made statements that lead one to believe his world view is more in line with this than with solutions that would allow people to keep their current standard of living.
It will not take long for voters to realize that the Democratic solution of investing in renewables and avoiding drilling for oil at all costs will not lower fuel costs or help the economy in the short term. If the democrats with a majority in congress and a real chance at the presidency don't lower the cost of oil they will also feel the wrath of the voters. Gas rebates and tax breaks for poor families will only do so much for the poor and middle class, if they are not careful they will push the economy from a slowdown to a recession and possibly a depression. It will be nearly impossible to fix the trade deficeit while we import so much of our oil.
If John McCain were truly smart he would give up his position on drilling and take a new energy policy. Drill everywhere that oil exists within US territory. Do it smart and in as environmentally friendly way as possible but do it. This would have an immediate effect on oil prices taking some of the speculation out of the market while bringing on new supply for the coming years. Take the money from oil leases and taxes on the oil companies and invest it in renewables, alternative energy, batteries, and electric infrastructure. Tell the American people the truth that long term we do not have enough oil to maintain affordable prices so the government will encourage electric transportation and investment. At first by mandating that car companies produce enough electric cars to supply government fleets and eventually by having the infrastructure in place to support moving our transportation over to electric vehicles and saving oil based fuels for cargo and shipping.
The price of gas and oil is causing a real drag on the economy. Consumers are spending more on fuel and energy so have less left to buy optional products. With interest rates likely to rise and energy costs rising or staying flat the American people are having more trouble stretching the paycheck from week to week.
The Democrats rightly or wrongly are viewed as better able to deal with domestic economy issues. They will provide tax relief to lower income families and probably socialize some services. They will attempt to punish industries that profit from high energy prices and invest some money in alternative energy.
The problem with the current situation is that the Democrats really have no solution to the high cost of oil. Any of the possible solutions that would be palatable to the party are unlikely to have any real impact at any time in the near future. Investing in renewable power generation and efficiency will not have an immediate impact. Increasing the taxes on the oil companies will have the effect of either increasing the price of gas or causing the one sector of the economy that is doing well to fail. Many Democrats and most individuals fail to realize that punishing publicly traded companies is detrimental to the economy and people's personal fortunes, as most 401k and retirement plans will have some exposure to the oil industry.
The green part of the Democratic party actually love the fact that gas is so high. They truly believe that anything to reduce the use of gas in America is a good thing because they believe that it will help the environment. Most of this wing of the party believe that personal transportation should be abandoned and that cities should be more compact with mass transit, large houses are bad, and the high standard of living that Americans enjoy in relation to the rest of the world is evil. They will reject any solution that does not change the lifestyle of the majority of Americans. Electric cars are rejected for bikes, mass transit, and walking. If you live in a suburb, you are just wrong, you should live in an apartment or condo where space is used more efficiently and you have less distance to travel for necessities. Even Obama has made statements that lead one to believe his world view is more in line with this than with solutions that would allow people to keep their current standard of living.
It will not take long for voters to realize that the Democratic solution of investing in renewables and avoiding drilling for oil at all costs will not lower fuel costs or help the economy in the short term. If the democrats with a majority in congress and a real chance at the presidency don't lower the cost of oil they will also feel the wrath of the voters. Gas rebates and tax breaks for poor families will only do so much for the poor and middle class, if they are not careful they will push the economy from a slowdown to a recession and possibly a depression. It will be nearly impossible to fix the trade deficeit while we import so much of our oil.
If John McCain were truly smart he would give up his position on drilling and take a new energy policy. Drill everywhere that oil exists within US territory. Do it smart and in as environmentally friendly way as possible but do it. This would have an immediate effect on oil prices taking some of the speculation out of the market while bringing on new supply for the coming years. Take the money from oil leases and taxes on the oil companies and invest it in renewables, alternative energy, batteries, and electric infrastructure. Tell the American people the truth that long term we do not have enough oil to maintain affordable prices so the government will encourage electric transportation and investment. At first by mandating that car companies produce enough electric cars to supply government fleets and eventually by having the infrastructure in place to support moving our transportation over to electric vehicles and saving oil based fuels for cargo and shipping.