Democrats Ignore Rising Gas Prices as Americans Feel Pain at the Pump
Democrats Undeterred in Job-Destroying Policies as American Workers and Families Cut Back to Deal with Spiking Gas Prices
The U.S. Department of Energy staff scrambled this week to spin remarks Energy Secretary Stephen Chu made in 2008 where he argued for higher, job-destroying gas prices to change consumer buying habits:
CHU IN 2008: “In a sign of one major internal difference, Mr. Chu has called for gradually ramping up gasoline taxes over 15 years to coax consumers into buying more-efficient cars and living in neighborhoods closer to work.
“‘Somehow we have to figure out how to boost the price of gasoline to the levels in Europe,’ Mr. Chu, who directs the Lawrence Berkeley National Laboratory in California, said in an interview with The Wall Street Journal in September.” (Neil King Jr. and Stephen Power, “Times Tough for Energy Overhaul,” The Wall Street Journal, 12/12/2008)
D.O.E. RESPONSE: “‘Secretary Chu has stated repeatedly that higher gas prices are a threat to the economy and take a harmful toll on America’s families,’ said Energy Department spokeswoman Stephanie Mueller in a statement Tuesday.”(Ben Geman, “Energy Department Defends Chu from GOP Gas Price Attack,” The Hill’s E2 wire blog, 3/8/2011)
Democrats may attempt to change their rhetoric on gas prices, but their policies continue to prevent increasing domestic energy production which would lower gas prices. Just last week Interior Secretary Ken Salazar reinforced his commitment to the administration’s “de facto moratorium” on drilling, challenging a federal court ruling that would force prompt decisions on five drilling permit requests:
“The Obama administration has fired another shot in the fight over the speed with which the Interior Department is — or isn’t — letting oil drillers resume work in the Gulf of Mexico after last year’s Deepwater Horizon explosion and oil spill.
“The administration late Friday appealed a judge’s orders directing the department to act on several pending Gulf Coast deep-water drilling permits.
“Gulf state lawmakers and the oil industry have accused the department of dragging its feet on the permits, enacting a de facto moratorium against new drilling, while the department has said it needs to ensure that safety and environmental protections are in place.” (Dan Berman and Darren Goode, “Interior Appeals Oil Drilling Ruling,” Politico, 3/4/2011)
Meanwhile, EPA administrator Lisa Jackson plans to circumvent congressional authority by regulating greenhouse gases through EPA rulemakings, a move likely to increase gas and electricity prices. Facing a congressional panel last week, Jackson criticized a bill that would interfere with EPA’s ability to unilaterally regulate carbon dioxide as a greenhouse gas:
“‘Chairman Upton’s bill is part of an effort to delay, weaken or eliminate Clean Air Act protections of the American public,’ Ms. Jackson said in her opening statement. ‘Chairman Upton’s bill would, in its own words, repeal the scientific finding regarding greenhouse gas emissions. Politicians overruling scientists on a scientific question — that would become part of this committee’s legacy.‘” (John M. Broder, “House Republicans Take E.P.A. Chief to Task”, The New York Times, 2/9/2011)
“On December 23, 2010, EPA issued a proposed schedule for establishing greenhouse gas (GHG) standards under the Clean Air Act for fossil fuel fired power plants and petroleum refineries. This schedule provides a measured and sensible path forward that will allow the agency to address pollution from sources that make up nearly 40 percent of the nation’s greenhouse gas emissions.” (“Climate Change: Regulatory Initiatives,” U.S. Environmental Protection Agency, Accessed 3/10/2011)
To that end, Obama’s FY 2012 budget includes, among other tax increases, higher taxes on energy producers, a cost likely to be shifted on to consumers in the form of higher gas prices:
“Obama also wants to repeal tax subsidies for companies that produce oil, natural gas and coal to bring in $3.61 billion in fiscal 2012 and $46.2 billion over 10 years.
“The American Petroleum Institute, an industry group, said ‘the increases, over the long term, would actually lower revenue to the government by many billions of dollars as a result of foregone revenues from projects the tax hikes would prevent going forward.'” (“Tax Hikes Resurrected in Obama Budget Proposal,” Fort Worth Star-Telegram, 2/14/2011)
Democrats can attempt to spin away their earlier rhetoric calling for higher gas prices, but try as they might, they can’t cover up the record gas prices exacerbated by their policies:
GAS AT $3.52/GALLON NATIONWIDE, UP FROM $2.76/GALLON A YEAR AGO(“Daily Fuel Gage Report, Current Average, Regular,” AAA, Accessed 3/9/11)
GAS PRICE SPIKE “AFFECTS JUST ABOUT EVERYTHING”: “Gas prices have jumped nearly 40 cents in a month and the pain at the pump affects just about everything.
“Airline tickets are up $60 to $100 compared to last year. Food prices are up more than 2 percent in a month…
“In fact, at one grocery store, employees were busy changing 785 price tags on Tuesday. Last week, they changed between 300 and 400 prices.” (Paula Morehouse, “Pain at the Pump Spreads,” KY3 News, 3/8/2011)
“‘Never in the 22 years that I’ve been doing business here in Arizona have we been affected by both the weather and now the gas situation,’ says Ted Palmisano with Peddler’s Son Produce.”
“Palmisano says that shoppers need to brace themselves for bigger grocery bills once fuel costs trickle down.” (“Costlier Groceries a Side Effect of Gas Prices,” Fox Phoenix, 3/7/2011)
CONSUMERS SHIFTING BUYING HABITS: “The impact at the pump is now a habit changer.
“‘I’ve already changed my habits a little bit, I rode my bike down here,’ said Peter Wills of Portland.” (Joe Smith, “Oregon Sees Ripple Effect of High Gas Prices,” KGW News Channel 8, 3/7/2011)
“Discount food chains, like Food 4 Less and Winco here in the Valley are noticing an uptick, in shoppers.
“‘Yeah we are getting new customers coming in, they do save money because you have to bag your own groceries,’ said Jessica Fain, a cashier at Food 4 Less.”(“Valley Shoppers Worried About Higher Food Prices,” KMPH Fox 26, 3/5/2011)
SMALL BUSINESS FEELING THE PINCH: “And, it’s already starting to affect business, particularly those that involve a lot of driving. Local couriers, for example, spend a lot of money on gas to deliver packages and documents all over town. A driver for Portland Courier says it’s getting to the point where they may have to look at raising prices, but then there’s the risk of losing business.”(“Pain at the Pump: Rising Gas Prices Affecting More Than What You Pay When You Fill Up,”WGME Channel 13, 3/8/2011)
SENIORS AND THOSE ON FIXED INCOMES PARTICULARLY AT RISK: “‘I think it’s absolutely ridiculous,’ said Early, 74, whose monthly Social Security check of $1,131 is her only income besides $251 a month in food stamps. She said she’s noticed food and utilities getting more expensive, but not as quickly as gas, ‘And it’s gonna go higher, there’s no doubt about that.'” (Arthur Delaney, “For Georgia Retiree, Surging Gas Prices ‘Absolutely Ridiculous’,” The Huffington Post, 3/7/2011)