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Aaron Belkin

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GOP Deceptions About Gas Prices

Posted: 02/18/2012 6:01 pm

"...Our return to Bush-era gas prices is because the economy is rebounding..."

Well, here they go again. With nothing positive to campaign on, GOP strategists have decided to launch a messaging war against President Obama, blaming him for the high price of gasoline. According to the New York Times, the GOP argument is that when Obama took office in 2009, gas was $1.89 per gallon. Today, the price for that same gallon is $3.52. So it must be Obama's fault. Rick Santorum even says that the Democrats "want higher energy prices."

But as I teach my undergraduate students on their first day in class, it is easy to make statistics lie. And you can bet that as the GOP unleashes its attack dogs on the White House, they'll do just that. What they won't tell you, for example, is that under George W. Bush, the price of gasoline increased from $1.60 per gallon when he took office in January 2001 to $4.40 per gallon in July 2008, a jump of 275 percent.

Now it's true that when the economy crashed, the price of gasoline decreased temporarily, in part because the economic meltdown suppressed demand. When Obama took office in January, 2009, the economy was at its low point, and as a result the price of gas was at a low point as well. As the economy improved under Obama's direction, the price of gas returned to its pre-crash baseline.

So the GOP deceptions are based on conveniently forgetting that: (1) the low, 2009 price of gas was simply a reflection of the economic meltdown that they helped cause; (2) before the crash, gas was even more expensive under Bush than it is now; and (3) rising gas prices are a reflection of our economic rebound.

Even worse, the GOP critique glosses over that Republicans have torpedoed every attempt to try to wean the country off of its oil dependency, which is of course the only long-run solution to higher gas prices and global warming.

But here's the rub. The GOP knows full well that if you repeat a lie often enough, you can redefine the truth. The Bush administration sold the public on the Iraq war, after all, by repeating over and over that Saddam Hussein possessed weapons of mass destruction and that he was connected to the 9/11 terrorists, thus implying that he would provide a nuclear weapon to al-Qaeda. As the administration repeated these lies again and again, a growing segment of the public came to believe that Hussein had a role in the 9/11 attacks, and that war was needed to eliminate the threat he posed.

(Even though you're probably familiar with that argument, check out this amazing video which shows just how repetition works. If you're interested in a longer conversation about how progressives can use repetition in a different way, check out chapter 3 of my ebook "How We Won: Progressive Lessons from the Repeal of 'Don't Ask, Don't Tell.'")

So, as the Republicans repeat their misleading claims, we need to saturate the airwaves with a message too. The only difference is that our message doesn't have to be based on deception. We can actually tell the truth: our return to Bush-era gas prices is because the economy is rebounding.

Sure, another pipeline here and offshore rig there will enable us to ignore our addiction for a few more years, but if the Republicans really want to avoid returning to Bush-era gas prices over the long term, they need to support policies that address demand, not just supply. We can't drill our way back to cheap oil.

 
"...Our return to Bush-era gas prices is because the economy is rebounding..." Well, here they go again. With nothing positive to campaign on, GOP strategists have decided to launch a messaging war a...
"...Our return to Bush-era gas prices is because the economy is rebounding..." Well, here they go again. With nothing positive to campaign on, GOP strategists have decided to launch a messaging war a...
 
 
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06:39 PM on 04/10/2012
so true about Bush, I feel he started 9/11 to get gas prices down to 20 bucks a barrel 1 month after 9/11, gas price history shows gas going down to 99cents a gallon 1 month after 9/11, during this time bush influenced a lot of people to invest billions of dollars in crude oil during October of 2001. at this time Bush had already had plans on using the 7trillon dollars of bailout money to go back to the investors that stood by him during his presidency. how convenient that the 7 trillion dollars was offered just before he left office, 3.5 trillion went to wall street the rest of it mysteriously disappeared. Bush raped this country and took advantage of the system. just think about it, who ever heard of a bailout plan? no-one.
Bush crossed the line for his selfish needs and we the american people are suffering from his greed.we need someone to speak-up and place America back on track.
BlackbirdHighway
Brawndo's got electrolites!
05:17 AM on 02/21/2012
The answer is very simple, if you don't like the price of gasoline, quit buying the stuff. I know several people who have and none of us are going back.
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grappler1987
Why does this generation ask for a sign?
02:31 AM on 02/21/2012
"Sure, another pipeline here and offshore rig there will enable us to ignore our addiction"

For starters, let's not ignore the component of our addiction that comes from outside N. America.

"In all scenarios considered, increases of Canadian crude oil imports into the U.S. correspondingly reduce U.S. imports of foreign oil from sources outside of North America" Source: DOE
http://www.keystonepipeline-xl.state.gov/clientsite/keystonexl.nsf?Open
12:08 AM on 02/21/2012
Why doesn't anyone talk about this reason for the rise in oil prices?
Quote from Christian Science Monitor April27, 2011--- Steve A. Yetiv---Who's to Blame for Rising Oil Prices:

Many blame Middle East turmoil or a weak dollar for rising oil prices, but they provide only a partial explanation. The chief culprit is speculation in oil markets. Fortunately, it can be stemmed with several regulatory steps.


So why have oil prices risen from around $36 dollars per barrel in December 2008 to $110 dollars per barrel now? And what can be done to lower them? Speculation in oil markets, which has little to do with oil demand and supply, is a key part of the problem, and it can be stemmed with several regulatory steps.

Oil prices are determined mainly by the combined behavior of oil traders on markets, the most important one being the New York Mercantile Exchange. When traders believe that oil prices will rise, they buy oil futures in the hope of selling them down the road for a profit. Such buying increases oil prices, and, eventually, the price of gasoline, heating oil, and many other products.

Oil prices started to rise because traders saw clear signs that the US and global economy were rebounding after the Great Recession, creating more demand for oil. The weakening dollar and fears that Middle East turmoil would disrupt oil supplies have also pushed prices higher.
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MrBadExample
Friends call me ‘exampleicious’
11:05 PM on 02/20/2012
Both sides bear responsibility for this--not for gasoline prices per se but for not being honest about the future of energy prices. Oil is a finite resource, and we've gotten all the easy oil out--everything we get out of deepwater wells or shale will be orders of magnitude more expensive and of lower quality than the light sweet crude  that's running out in places like Saudi Arabia and East Texas. And there's no combination of alt-fuels that will make up the difference--as James Kunstler of the Post Carbon Institute has written, there's no way we're going to run the interstates and commercial airliners and DisneyWorld on solar or wind.


"Mr. Obama keeps telling nationwide audiences that "we have a supply of natural gas that can last America nearly 100 years." That is just not true. If he believes it then he is either 1) getting treasonously bad advice from dishonest advisors or 2) not reading reports issued by his own agencies or 3) just making shit up. This was the same week, by the way, when the US Department of Energy dropped its estimate for the Marcellus shale gas play by 66 percent, while the estimate for all US shale basins went down 42 percent. The shale gas industry is another Ponzi bubble that is about to founder on a scarcity of investment capital. Just watch."

Plenty of blame to go around.
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lbsaltzman
Permaculture and Sustainability
11:57 PM on 02/20/2012
Well put! Peak oil is almost become a dirty word. Nobody wants to face limits.
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grappler1987
Why does this generation ask for a sign?
03:08 AM on 02/21/2012
"there's no combinatio­n of alt-fuels that will make up the difference­"

No doubt. But coal-to-liquid can make up a third of it and America has more coal than any other country.

http://globalchange.mit.edu/files/document/MITJPSPGC_Rpt197.pdf
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MrBadExample
Friends call me ‘exampleicious’
06:50 AM on 02/21/2012
You might google the phrase 'peak coal'--we've run through the world's supply of the most energy dense coal, anthracite, and are pretty close to running out of bitumous. What's left is non-bitumous and lignite, and while we apparently have lots of both, neither provides much EROI (energy return on investment). As the article you provided points out, the process is extremely expensive. The only people who have ever tried it are the Germans, and it wasn't a good idea even with lots of slave labor doing the grunt work.
09:47 PM on 02/20/2012
I trust you were there in 2008 to explain that the 275 percent increase under Bush was the trade off of experiencing a booming economy, unlike CNN:

http://articles.cnn.com/2008-06-09/politics/bush.congress_1_alternative-fuels-gasoline-prices-gas-prices?_s=PM:POLITICS

As might be expected, CNN says something different about our current prices:

http://politicalticker.blogs.cnn.com/2011/04/23/political-realities-and-gas-prices/
BlackbirdHighway
Brawndo's got electrolites!
05:13 AM on 02/21/2012
There was a bubble in housing prices and oil prices, and the top 1% did great, but for most people 2008 was not a booming economy. Lots of layoffs depressed the job market and wages.
08:26 AM on 02/21/2012
Yes. Bush's 2+% growth rate is not exactly booming considered historically. It is booming compared to today.

But then, as now, the prices were largely caused by the fundamentals of supply and demand. Even liberal economist Paul Krugman concludes as much:

http://krugman.blogs.nytimes.com/2010/02/22/the-oil-bubble-controversy-revisited/

My point was really about double standards. I would expect politicians of both parties to exhibit double standards in their rhetoric. I expect more from our media.
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09:34 PM on 02/20/2012
"Because we are now running out of gas and oil, we must prepare quickly for a third change, to strict conservation... and permanent renewable energy sources, like solar power. ~ Jimmy Carter, 1977

China Leads Global Investments in Renewable Energy (particularly solar power), Dec. 2011
http://au.ibtimes.com/articles/261083/20111205/china-leads-global-investments-renewable-energy.htm

Yet, people still think we can drill our way out of this....
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grappler1987
Why does this generation ask for a sign?
03:04 AM on 02/21/2012
Carter was an all-of-the-above backer. Me too.

http://www.cartercenter.org/news/editorials_speeches/crisis_of_confidence.html
15 July 1979
"Point three: To give us energy security, I am asking for the most massive peacetime commitment of funds and resources in our Nation's history to develop America's own alternative sources of fuel—from coal, from oil shale, from plant products for gasohol, from unconventional gas, from the Sun."

"You know we can do it. We have the natural resources. We have more oil in our shale alone than several Saudi Arabias. We have more coal than any nation on Earth. We have the world's highest level of technology. We have the most skilled work force, with innovative genius, and I firmly believe that we have the national will to win this war."
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Terri Skau
the moon rises as the sun sets
09:30 PM on 02/20/2012
President’s Day

Today, we celebrate President’s Day, a day to remember and celebrate the birthdays of President Washington and President Lincoln. The highest elected office in our government is an office of stature and respect, but it is also an office of humility, honor, and unwavering commitment to the United States.

My two favorite presidents are our first president, a quiet farmer from Virginia, George Washington, and our fortieth president, an outspoken actor-turned-governor from California, Ronald Reagan. Both believed that the government that governs best is the government that governs least. They believed in a republic where the people had control of their government, and not the other way around. I want to continue the legacy that these two great presidents left us with, and celebrate the impact they had on our history and our heritage.
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Terri Skau
the moon rises as the sun sets
09:30 PM on 02/20/2012
I will discuss my efforts as Chairman of the Financial Services Oversight and Investigations subcommittee to rein in overbearing government agencies that burden small businesses and families with red tape.

Three Years After Obama’s Stimulus, Where are the Jobs?

February 17th marked three years after President Obama signed the failed stimulus package into law. However, one question still remains: where are the jobs? After spending $1.2 trillion of taxpayer funds to help jump-start the economy, the results show the president’s policies have failed. The President promised the stimulus would “save or create 3.5 million jobs,†yet we’ve only lost jobs. In fact, we’ve lost 1.1 million since the President took office.

Since taking office, I have voted against every stimulus package brought to the House Floor and have refused to lend my support for any budget proposal that enslaves future generations in debt. I strongly believe that continuing to spend money we do not have will only promote the same type of reckless and irresponsible behavior that initially led us down this destructive path.
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Terri Skau
the moon rises as the sun sets
09:29 PM on 02/20/2012
-- Randy's Roundup --

A Weekly Newsletter from Congressman Randy Neugebauer

Jobs and Education Emphasized through Events This Week

This week, I will be traveling around the district highlighting job creation and education. On Wednesday, I will speak to a group of students involved in the Mentor Tech program at Texas Tech about my journey from local businessman to Congressman. Thursday morning, I will visit the students, teachers and staff of Lakeview Head Start Center in Big Spring. Lakeview students sent me Valentine’s Day cards last week and I look forward to thanking them in person. I will also attend the “Go Red for Women†Luncheon hosted by the Scenic Mountain Medical Center in Big Spring, which aims to raise awareness of all aspects of cardiovascular disease and promote fit and healthy living.

Thursday afternoon, I will tour Desert Tanks, a Big Spring company that manufactures fracking tanks for the oil industry. Under new ownership since 2011, it has grown from 15 employees to over 70. Desert Tanks is a rapidly growing company, with long-term goals to build a plant in Lubbock. I look forward to touring this facility and always enjoy meeting with West Texas entrepreneurs.

Thursday evening, I will attend the Hereford Chamber of Commerce Banquet. On Friday, I am honored to speak at the Lubbock Chamber of Commerce Policy Regulatory Focus Luncheon, “Covered in Red Tape.â€
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Terri Skau
the moon rises as the sun sets
09:28 PM on 02/20/2012
Well my fellow HP'er's I just got A Weekly Newsletter from Congressman Randy Neugebauer So please I do have to post it in sections...

As always this is for all to read about what the GOP is saying.
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kjohney
trust me... I'm liberal.
09:23 PM on 02/20/2012
Why no mention of the affect speculation is having on oil prices?
08:39 PM on 02/20/2012
Obama is perfect so if he did anything that was wrong it has to be Bush's fault. Aaron Belkin is getting his facts directly from God at least that is what he wants us all to believe Gas prices are going up because our government under the leadership of Obama will not let us drill for oil in this country nor allow the Canadian pipe line to come through here. Now someone out there is going to say I('m a Bush Republican and they will be as wrong as Belkin as I'm strictly an Independent American, not a Liberal or a Conservative, a Democrat or a Republican, but just a 72 year old American that loves my country and hates seeing the Belkins of this world make biased false statements. Yes, I checked the facts.
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kjohney
trust me... I'm liberal.
09:29 PM on 02/20/2012
I won't say that you're a Bush Republican. You're just wrong. Starting a new pipeline right now, or not starting one wouldn't affect the price at the pump today. Nor would it affect the price for a long time.
04:33 AM on 02/21/2012
If we had told people like you to shut their gobs ten years ago, we'd have a lot of new sources coming on line right now.
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09:39 PM on 02/20/2012
I'd love to know the source of your facts.

1. Our oil is not nationalized - it is sold on the world market;

2. Canada is a foreign country - foreign oil transported across the heartland of our country - refined in Texas - loaded onto tankers in the Gulf of Mexico - to be sold on the world market.

If you have facts conflicting with mine, please share.
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grappler1987
Why does this generation ask for a sign?
02:26 AM on 02/21/2012
"loaded onto tankers in the Gulf of Mexico - to be sold on the world market."

The Department of Energy certainly disagrees.

Oil sands will "fill a gap being created by declining supply from traditional heavy crude suppliers, notably Mexico and Venezuela, a gap it is projected would otherwise be filled by increases in other foreign supplies, notably from the Middle East."

"In all scenarios considered, increases of Canadian crude oil imports into the U.S. correspondingly reduce U.S. imports of foreign oil from sources outside of North America"

"Together, growing Canadian oil sands imports and U.S. demand reduction have the potential to very substantially reduce U.S. dependency on non-Canadian foreign oil, including from the Middle East."

http://www.keystonepipeline-xl.state.gov/clientsite/keystonexl.nsf?Open
08:36 PM on 02/20/2012
Somehow nothing is Obamas fault and each and everything was & is the last Presidents fault. If I changed every GOP entry in ths article with the word - democrat - would this article be less of a joke or more of a joke? Depends on who you ask. One thing is certain, whoever the Independents side with will decide the election. I bet thats why this propaganda - I mean article is here...
06:20 PM on 02/20/2012
Steven Chu, in his own words.
"Somehow we have to figure out how to boost the price of gasoline to the levels in Europe."

Thanks Mr. Chu.
rixter1965
I'll respect your beliefs, but at least be consist
07:55 PM on 02/20/2012
Well, if we live in a supply-and-demand economy and gas is not a RIGHT, maybe that's the option. Because bigger and badder vehicles seems to be a status symbol here -- along with driving everywhere all the time.
wsdave
Abusive or Insulting? I won't be responding.
12:13 AM on 02/21/2012
In our defense, compared to Europe, the USA is a HUGE country. You can spend an entire day just driving through Texas. In Europe, you'd have gone through 5 countries in that time.
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kjohney
trust me... I'm liberal.
09:49 PM on 02/20/2012
Nice out of context quote to gin up some fear. But in your defense, the right wing rag that you, no doubt, got that info from didn't post the next line of the Wall Street Journal article that it was taken from. Here is the next line: (stop reading if you are truth intolerant).

"But Mr. Obama has dismissed the idea of boosting the federal gasoline tax, a move energy experts say could be the single most effective step to promote alternative energies and temper demand. "
11:06 AM on 02/21/2012
I fail to see how your next line makes the quote out of context. Chu wants to raise prices, but the president won't increases taxes. All his quote does it makes clear Chu's position; your quote does nothing to detract from that. In fact, we don't even know if Obama agrees or not; we only know that he doesn't view raising oil tax as a politically expedient move.