With Professor Schaff frolicking abroad, the regional blogosphere has suddenly become a rather hollow space. Not much lately from CCK, Dakota Women, or the Northern Valley Beacon. It's like Puff the Magic Dragon after Jackie Paper went off to law school.
But I can be Jon Schaff. Here is the Wall Street Journal on gas price gouging.
It's Memorial Day weekend and the start of the summer driving season, so naturally it's time for Congress to grandstand against $3-a-gallon gasoline. And right on cue, the House passed legislation last week to criminalize gasoline "price gouging," whatever that is. Perhaps this is all designed to distract the public from Congress's own role in raising gas prices.
Under the anti-gouging law, service station owners could face up to 10 years in prison if they dare to raise their prices too much when supplies are low. Representative Bart Stupak, the Michigan Democrat who sponsored this scheme, said the vote would determine whether Members "side with Big Oil" or "side with consumers who are being ripped off at the gas pump." Who elects these guys?
The inconvenient fact is that there's no evidence of price rigging by Big Oil or the tens of thousands of independent service station owners across America. The causes of higher gas prices include $65-a-barrel oil caused by rising global demand and geopolitical tensions, a record high U.S. gasoline consumption of 380 million gallons a day, and refined gasoline shortages caused by Congressional rules and mandates. Far from withholding production to raise prices, U.S. gasoline production of 8.8 million barrels a day is higher than any time in history and refineries are getting more gas per barrel of oil than ever before.
This kind of legislation is empty of thought or seriousness. Its only purpose is to squeeze a little more political advantage by encouraging popular prejudice.
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