Wednesday, June 11, 2008

Yet more Obamastupidity

A month ago, liberals were complaining that Hillary Clinton was a totally ignorant fool for suggesting that lower gasoline taxes will lead to lower gas prices (embedded hyperlinks removed):
The gas tax holiday doesn’t help “ordinary Americans.” The supply of petroleum during the summer months is essentially fixed, and the oil companies will charge what traffic will bear. If taxes are lower, they will simply charge the same amount and pocket the difference. Clinton’s proposal includes some weird end-around in which the oil companies pay extra windfall profits taxes so that the idea is purportedly revenue-neutral; which means the whole scheme is precisely meaningless, as the same amount of tax is being paid either way.
Now, the liberal theory is that higher taxes are the key to lower gas prices:
Senate Democrats on Wednesday called for a windfall profits tax on oil companies and a rollback of $17 billion in oil industry tax breaks as part of an energy package. The proposal also would impose federal penalties on energy price gouging and calls for stopping oil deliveries into the government's emergency reserve.
Here's the argument for why this would reduce gasoline prices:
Democrats characterized the proposal as attacking "the root causes of high gas prices," although it wasn't clear how today's high oil costs _ set in a global market _ or gasoline prices edging toward $4 a gallon would be appreciably affected.
As you might have expected for a proposal that seems like a no-brainer to Barack Obama, this proposal only makes sense from a hard-core Socialist standpoint. The operating theory here is that oil executives raise prices only because they hate poor people, profit from price gouging them, and actually enjoy the screams and moans of despair as poor people are driven to madness, sickness, and death by ever-higher prices. In the Obama universe, the only thing keeping oil executives from raising oil prices to infinity per barrel is the determination of Democrats to really f**k the oil companies if they raise prices to high.

Thus, the price of oil is not set by a balance of supply with demand but by the "balance of terror": the balance of the oil company's greed with the ability of the Democrats to wage class warfare against them.

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