Gas Prices

They affect most us here in Dallas County. Many of us drive to work in Des Moines from where we live. Many of us need gas for our farm equipment and vehicles. Many of us have social lives that take us to family and friends that reside throughout our state. In any case, gas prices are, no doubt, a concern for those living in Iowa (and the U.S.).

So, the question that many are asking is this: Why hasn’t the government done anything about high gas prices?

First, the concept of gas prices being critically influenced by government is folly. Now, government can do little things here and there to create minor changes in the economy, such as the stimulus checks. However, unless a government is socialist/communist, there are few ways that government can seriously influence the free market and the national/global economy. However, the Democratic Party seems to believe that the government has the ability to effect massive changes in the American and even the global economy.

While that may not be the official party platform, the party certainly believes that there is only one person responsible for the economic downturn we are currently in: President Bush. The Democratic Party believes (and wants us to believe) that high gas prices, higher unemployment, and the weakening dollar are because of the actions or inaction of this one man. You see, they like to tie the President to the economy for two reasons.

• It fits into their narrative that George W. Bush is one of the worst Presidents because the economy was woeful during his Presidency…and therefore, Republicans shouldn’t control the White House in 2008.
• It fits into their narrative that Bill Clinton was one of the best Presidents because the economy was wonderful during his Presidency…and therefore, Democrats should control the White House in 2008.

Democrats love the idea that the government seemingly controls which way the economy goes, because it fits within their delightful political narrative of the past 15 years. Now, most economists would say that the President and the government can’t affect the economy THAT much. The boom of the 1990s was not the doing of Bill Clinton.

However, let’s go ahead and say that the government CAN affect MASSIVE change within our economy. Congress has been controlled by Democrats during the last 18 months. What have they done? Let’s look at gas prices as an example.

We reached a high of $3.15 in mid-May of 2007. The prices went down a shade, and then shot up about a dollar over the next year.

So we have two conclusions:

1. Either the Democrats in Congress have done a terrible job taking care of the economy for 2 years

OR

2. Government really can’t strongly influence a complex economy.

So which is it? Are the Democrats in Congress poor stewards of the economy, causing gas prices to go higher than ever? Or is the market economy so diverse that the United States government can’t really do that much, and the Democrats have been wrong to criticize the President for his “poor economic leadership.”

For me, I like to think that the former is true, but I know that the latter is the correct answer, but I’d sure like to hear that from a Democrat in Congress.