In presidential candidate Ron Paul’s Thanksgiving edition of his weekly column entitled “Pain at the Pump” he explains high gasoline prices are due to government taxes and environmental regulations. This is nonsense and here is why.
Firstly, the amount of fuel tax has not changed for years. Everyone has been paying just under .50 cents per gallon for state and federal tax for a long time, no matter what the price of the fuel at the pump has been.
Secondly, he goes on to blame environmental regulations for oil companies not building more refineries. This sort of logic would have car companies failing for having to put in seat belts, brake lights and turn signals. Refineries didn’t get built because the demand wasn’t there to justify the cost and free marketer Ron Paul should know this.
Which leads to the third point Dr. Paul omits, and that is the market forces in play here. As supply goes down and demand goes up, so do prices. This is a no brainer to everyone, isn’t it? Yet no mention is made of this important fact. Paul also fails to report that consumption is up and at record levels, thereby missing the point entirely that conservation will lower consumption which will in turn lower prices.
Too bad, as always if someone or something seems too good to be true, it probably is. Ron Paul is no exception to the rule and I come away truly disappointed in this short sighted oil-industry funded point of view. I no longer support Ron Paul for US President and will formally request the campaign refund my donations. I will redirect my support to candidates that reflect my values and will truly represent me in congress.
Drive 55 Conservation Project
Peace Train to DC