Gas Prices = Political Gain?

The New York Times reports: “Democrats Eager to Exploit Anger Over Gas Prices”. In my opinion, the story speaks volumes about the state of the economy. No longer are the Democrats trying to argue that there is stagnant job growth or falling real wages. But will the strategy work?

Via Heavy Lifting:

This is a chart of an index of President Bush’s poll numbers and an index of gasoline prices (down means up for the price of gasoline). The graph suggests that there is a strong correlation between the two. Currently a student of econometrics is trying to determine what has the strongest correlation with Bush’s falling numbers. The explanatory variables include gas prices and the number of deaths in Iraq.

The strategy may work initially for the Democrats, however, the Republicans could gain a quick advantage by pointing out the fact that they have tried to open up more areas for drilling — whether or not you agree with this action, it plays well to the public — and then ask Democrats what their plan is to solve the problem.

While it is understandable for citizens to get upset about higher gas prices, the blame should not be placed on the government. In actuality there is little — if anything — the government can do to reduce the prices. A temporary relief from excise taxes would reduce gas prices by an average of $0.45 per gallon, however, the government is more likely to put a limit on gas prices. Such action may initially please the public, but would result in long queues at the pump and gas shortages.

The best possible solution for those who are unable or unwilling to pay the high price of gasoline would be to substitute into other modes of transportation. Car pooling, public transporting, or a simple reduction in travel would all help to ease the pricing pressure.