The Motley Fool Discussion Boards

Previous Page

Politics & Current Events / Political Asylum


Subject:  Re: I predict $5 gas Date:  10/4/2012  1:37 PM
Author:  jdp245 Number:  1821124 of 2204355

If Obama gets re-elected we'll probably have $5 before his swearing in again.

I've never figured out this attempt by Republicans to link rising gas prices to allegations that Obama's economic policies have failed.

Gas prices move primarily with two variables: (1) the price of oil and (2) demand for gas vs. refinery output. (There is a major third factor in the price, taxes, but we'll assume that those remain constant.)

Refinery output is completely under the control of the oil industry. Neither of the other two factors is under control of the president. But both of those factors increase (causing the price of gas to increase) as economic activity increases, causing demand for gas and oil to climb higher. So, ignoring temporary increases caused by refineries going off line (which the President has nothing to do with), higher gas prices are basically the result of increased economic activity. So how the heck does this show that Obama is bad for the economy? (Maybe what you are saying is that Obama is good for the economy, but bad for gas prices?)
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us