Follow the Money

Here's a quick question before getting into this one: If gas prices were to hit $5 a gallon before November 4th, who would get a 'bump' in the presidential election? Personally, I think the more people have to pay at the pump, the better Obama looks. With that in mind, here's are some observations I've made recently.

Labor Day came and went, and our local gas prices stayed the same.

The Dow lost 500 points, the prices of a barrel of oil went up $10, and our local gas prices stayed the same.

Hurricane Ike slammed the Southeastern U.S., knocking out a refinery or two, and our local gas prices stayed the same. [Now, Ike did cause a run on gasoline and a subsequent shortage in the immediate area. But usually when a refinery goes down anywhere, the oil companies raise their prices everywhere in the country.]

Why is it that the "normal" fluctuations that gasoline prices usually have are not apparent lately? I think it's a rather commonly held belief that gas prices quickly shoot up on any negative news, then fall down slowly (if at all). Odd that they are not reacting to major catastrophes, financial woes, or even the cost of oil itself.

Of course, nothing is really odd if you believe that the oil company execs are holding the price still to help the candidate that they think will help them the most. That alone is enough to decide my vote. I want the guy that they don't.

Gas Price Prediction

I've been saying this for about four weeks, but it only now occurred to me to blog it: I predict gas prices will hit an all-time low in the last week of October. Then, no matter which party wins the most seats, it will rise again.

It'll lower because oil companies have it great right now for two reasons: 1) They're not being investigated for price gouging, and 2) they're price gouging. To keep this going, they want Republicans to remain in control, and to sway voters, they want them to be happier about saving at the pump.

However, even if the Republicans retain Congressional control, the prices will rise again because oil companies can get away with it, just as they have been for five years. If the Democrats win control, the prices will still go up again because the oil companies know that they're already going to get burned on what they've already done, so they might as well get some more money for their legal war chests. Plus, it'll help them in 2008 to "show" that Dems couldn't help keep prices down, or some malarkey like that.

But remember this: Before 9/11, high gas prices were $1.35 per gallon. Don't let them fool you into thinking that a drop down to $2.05 is a good thing. Exxon Mobil posted history-making annual profits. No business organization in the history of our planet made more money in a single year than they did. And that was during a time of war. President Harry S. Truman said,

Every businessman who is trying to profiteer in time of national danger — and every person who is selfishly trying to get more than his neighbor — is doing just exactly the thing that any enemy of this country would want him to do.

July 19, 1950

Gas prices hit such record highs that many local and state governments temporarily suspended taxes on fuel. These taxes often pay for road maintenance and emergency assistance vehicles and staff. Those are still ongoing expenses, so they'll have to come from somewhere. Property taxes? Maybe.

The costs of your truck-delivered food and goods also went up, didn't it? If it costs twice as much to transport your foodstuffs, don't expect someone else to eat the cost.

Do yourself a favor: Vote Blue in November. Let us guarantee that you're being treated fairly at the pump. More small businesses close during Republican control than Democrat. Unemployment goes up under Republican "leadership." Who's good for small business?