Dems forgetting that economics depends on demand....AND supply

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“War Over Gas Prices Explodes” is the headline in Roll Call today, which writes, “[B]oth parties and President Bush ratcheted up the blame game Tuesday and scrambled to propose an ever-expanding list of possible salves.”  Of course, it’s instructive to recall that Democrats have been firing salvos over gas prices for more than two years. In fact, Senate Democrats and their Senate candidates were saying, “Talk is cheap, gas is not,” and promising that if they were given control of Congress, they would act to alleviate high gas prices.

Two years later, “Gasoline . . . is $1.25 more, on average, than it was when the Democrats took over Congress,” as Senate Republican Leader Mitch McConnell said at a press conference yesterday. Senate Republican Conference Vice Chair John Cornyn elaborated: “Two years ago, Speaker Pelosi said that if Democrats were given the majority, they would produce a common sense plan for reducing the pain at the pump. Well, we’re still waiting for that plan.”

Politico reports today, though, that Democrats are actually working on proposals, but that they are apparently more interested in scoring political points against Republicans and demonizing oil companies than doing anything to address the real issue of energy supplies.  Their ideas apparently range from bad Carter-era retreads like windfall profits taxes to demanding price gouging investigations that have turned up nothing in the past.

At a Rose Garden press conference yesterday President Bush warned, “Congress is considering bills to raise taxes on domestic energy production, impose new and costly mandates on producers, and demand dramatic emissions cuts that would shut down coal plants, and increase reliance on expensive natural gas. That would drive up prices even further. The cost of these actions would be passed on to consumers in the form of even higher prices at the pump and even bigger electric bills.”

As Roll Call noted, “Republicans said there was no mystery to rising prices — supply isn’t keeping up with rising demand.” Indeed, Republicans took the opportunity yesterday to remind reporters that Democrats have repeatedly scuttled GOP proposals to increase domestic energy supplies. As Sen. McConnell said, “[W]e’ve had an opportunity to build more refineries, and the Democratic majority voted it down.  We’ve had an opportunity to open up additional parts of the outer continental shelf, even in a place like Virginia where you had one Democratic senator and one Republican senator in favor of it, and the Democratic majority voted it down. It’s clear that on the production side of the equation, this new majority is not interested in doing anything.” Senate Republican Whip Jon Kyl added that President Clinton vetoed a Republican plan to drill for oil in ANWR years ago, which could now be producing quite a bit of oil.

Republicans have proposed basic steps Congress could take to increase domestic energy supplies, but Democrats have repeatedly opposed them. It’s unfortunate, but unsurprising, that in the absence of constructive suggestions, Democrats are looking instead to score political points.