Monday, April 30, 2012

Gas Price Drop: Much Ado about Nothing

Just before the beginning of the Obama presidency gasoline prices averaged less than $2.00 a gallon, since then they've soared to over $3.80 a gallon.

So now here we are in an election year facing high gas prices and even higher unemployment and the media is making a deal about gas prices dropping on average by 8 cents.

THE RACE: Gas price drop may offer political bonus

You wouldn't know it from campaign rhetoric, but gasoline prices have been trending down.
Six months out, polls show the presidential race is very close and that the frail economy and jobs still top voter worry lists. Thus even a small drop in gas prices could generate big political ripples.
Generally, any slide in gas prices should benefit President Barack Obama more than presumptive GOP challenger Mitt Romney, and vice versa.
After flirting with $4 a gallon earlier this spring, the recent national average of $3.83 a gallon is down eight cents from a month ago.
The drop hasn't registered politically yet. Each party is blaming the other for high pump prices.
Republicans fault Obama for policies they claim are restricting U.S. oil production and pushing up energy costs, including his blocking the Keystone XL Canada-to-Texas oil pipeline. They also say he's taking credit for production increases that owe much to his Republican predecessor, George W. Bush. "No matter how Obama spins it, gas costs too much," says an ad by Crossroads GPS, a Republican super PAC.
Any drop in gas prices is good news but I think it's a little disingenuous for the media to start touting this as a game changer for the Obama administration.
The average price of gas is still to high for the regular guy just trying to make ends meet and support his family.
Just because one Obama EPA official gets caught revealing his disdain for the American consumer and resigns doesn't mean there ain't more waiting to take his place.

No comments: