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Sasha Abramsky

Sasha Abramsky

Posted: November 12, 2007 03:24 PM

Bush and the Four Dollar Gallon


In June 2000, then-presidential candidate George W. Bush told reporters, according to CNN, that Al Gore was responsible for spiking oil prices. Gore, said the GOP man, "writes in a book that he thinks we ought to have higher fuel prices, and now that he's running for president and there's higher fuel prices, he seems to be changing his tune."

Bush's words were part of a steady drumbeat of conservative criticism launched at the Clinton administration, and laced with anti-environmental, and anti-tax rhetoric, over high gas prices. In the twelve months from June 1999 to June 2000, oil prices on the world market had climbed to a shocking $34 a barrel; meanwhile, in America, at-the-pump prices had jumped by over 40 percent, averaging a hard-to-fathom $1.71 a gallon by mid-2000, according to the Heritage Foundation. Some poor sods in out-of-the-way locales were having to fork over more than $2 a gallon. And, said the Republicans, it was all the fault of wooly-headed greens and their big-tax politico friends. It was also, many Republicans let it be known, the fault of OPEC... those greedy foreigners out to squeeze every last dollar from their liquid gold assets.

Ah... those innocent, halcyon days. Seven years of GOP-rule, and a half-decade of middle-eastern wars later, oil prices are about to hit $100 a barrel. And in many parts of America, especially rural areas far from distribution pipelines, consumers are facing the imminent prospect of the $4 gallon. (Actually, I paid over $4 a gallon in towns along the eastern edge of the High Sierra several months ago; my guess is today some village gas stations in remote desert and mountain wildernesses are paying up to $4.50.)

At the same time, because the Republicans so aggressively squashed attempts to raise the minimum wage during the first six years of the Bush presidency, tens of millions of Americans are earning about the same wages they were earning back in 2000 when they were hit so hard by the $2 gallon.

The scandal is in the combo of high energy prices and low wages.

Poor people can't afford newer, more environmentally sensible cars, so they make their old gaz-guzzlers last well into automotive senility. I wrote about people in this sorry situation last year, back when gas prices were hitting the then-unfathomable $3 mark and poor people in rural counties working minimum wage jobs found themselves spending upwards of twenty percent of their income buying gas to drive to their dead-end jobs.

If gas was hitting $4 a gallon because Bush had had a road-to-Damascus awakening and had prodded Congress to enact a $2 a gallon gasoline tax so that billions of dollars could be raised for R & D into carbon-neutral energy technologies, subsidies so that poor people could afford more efficient vehicles, and a better public transport infrastructure, I'd say more power to him. But the fact is the per-barrel cost of gas is now close to triple what it was when prices peaked in 2000, and all those tens of billions of extra dollars Americans now have to spend annually filling their tanks are flowing into the treasuries of oil-producing countries and into the flush bank accounts of transnational oil companies. It's an absolutely stunning transfer of funds and rearrangement of geopolitical power.

So where's the outrage of the Heritage Foundation, and the concern for the little people now? In particular, where is Bush - the man who blamed the $2 gallon on a hypothetical call for higher gas taxes - today, when people earning scandalously low wages, at least in part because of his administration's antipathy to the minimum wage, are spending a quarter of their meager paycheck simply filling up their cars to drive to work? The answer is asleep on the job, unable, because of his addiction to free market ideology, to think up creative subsidies, tax rebates and other financial and regulatory mechanisms that could ease the pain of poor people left to the oh-so-tender mercies of global energy markets.

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12:20 PM on 11/15/2007
This GOP Oiligarchy in DC is so happy. Their plan has been working well for years now. Increase the profits on oil, while encouraging greater consumption. Get maximum profits out of the ground before the oil starts to dry up and/or the environment is so degraded even the Oiligarchs will start to worry about their grandchildren (a very high bar to reach indeed). Then when the lemon has been squeezed sufficiently, we'll see alternative fuels, again in the hands of the now former Oiligarchs, and the squeeze can continue with other forms of energy, like hydrogen. Very nice because not too many of us know how to generate vast amounts of liquid hydrogen at home. And here we have all these homilies about how you can just get a better job or buy a more efficient vehicle, or just walk. Who out there sees that these are just adaptations to economic oppression? The rich are super, super rich and the fixed income, disabled, low-wagers can just go screw themselves. The Republican Paradise is in full bloom. Enjoy it, if you can.
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05:42 AM on 11/15/2007
I don't know about "regulatory mechanisms" for the ubiquitous "poor people."

Maybe a better and simpler strategy would be, "stop waging world-war on the oil producing countries."

For every ten futures-traders for whom such things are "merely paper," a futures contract is to somebody a real contract to deliver, say, oil ... at some future someday at some present-day price. When you are threatening various producing countries with annihilation, guess what? The price goes up, just to cover the risks involved.

Is something about that idea ... difficult ... to understand?
12:01 PM on 11/13/2007
In parts of the San Francisco Bay area, regular gas was already above $3.50 yesterday. This area's gas prices are typically among the highest in the 48 states. Apart from the normal factors buffeting the oil markets (such as the Iraq war), you can also blame California's special blend of gas requirements, limited competition at the refinery level and limited competition at the gas station level. You can blame Bush for the first factor, but the other three factors are "home grown". By comparison, in the Atlantic City, NJ area, regular gas is about $2.87, according to AAA's web site. I guess the trust fund babies living in SF's million dollar plus condos can afford the high gas prices. The rest of the city's residents can take the bus or move.
11:40 AM on 11/13/2007
Because almost half of Americans bought into Bush's lies we all have to pay the price.
The average citizen would get more punishment from a traffic ticket than Bush has for illegally invading a foreign nation and murdering a million of it's citizens.
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ImmanuelGoldstein
Founder of the "Brotherhood"
11:16 AM on 11/13/2007
Hey wait unil President Cheney gets his war with Iran. Then you'll see it go to $6-$8 a gallon!
10:00 AM on 11/13/2007
As gas keeps going up, I'll drive my electric truck and laugh as I see the price of gas climb (I can go about 25 miles at 35 mph on a charge). Maybe Detroit and Japan will one day cut their ties to Big Oil and actually develop a real PHEV (plug in electric vehicle) or an all electric vehicle with better speed and distance, but I am not holding my breath. Or maybe, given the pollution level, I should.
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SKonnery
09:02 AM on 11/13/2007
Impeach!!
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HUFFPOST SUPER USER
Vajara
vajara
09:00 AM on 11/13/2007
This is probably the beginning of an effort to drill in our proteced areas of the world as the "R's" have continued to support such an effort. As we know, most of them don't give a hoot about protecting families, nature and our environment.

I'm thinking about buying a motorcycle, but I realize how dangerous they are. I have to drive 50 miles every day to work and am doing all I can to join a car pool. Can't afford an economy car and we don't have bus transportation. We are in a bind and am hopeful the elections take care of this mess
06:45 AM on 11/13/2007
Americans are so stupid...gasoline in Europe now costs over 7 dollars a gallon. Europeans drive smaller cars, have better public transport and the fuel taxes they pay stay in the country. Keep buying those Escalades, fools.
researcher
researcher
01:35 AM on 11/13/2007
oh the price of war mongering and imperialism.

now middle class line up to vote for those folks that smile all the way to the bank with their lobbyists checks from corporate american and go to work for lobbyists after leaving office for huge sums of money.

guess who told you the two party system is the best in the world.

now dont forget to look for that terrorist and socialist under your bed tonight before you go to sleep.
01:02 AM on 11/13/2007
i live in ky and i tried to tell everybody in 1999 that if king george got the whitehouse we would have four dollar a gallon gas before he left office. the man is a psychopath who has little mans syndrome and he has destroyed everything he has ever touched. now he has destoryed our armed forces and our country.
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TXfemmom
Grandma with eye on the future
10:09 PM on 11/12/2007
Bush and the oil companies are pushing this to the brink with talk of unending war and we are being Enroned.

Americans need to conserve as much as possible, and then take it out on the PUKES in the elections.

The best way to get out of this is to START CHARGING ALL THOSE COUNTRIES TO PROTECT THEIR OIL FACILITIES IN THE GULF AND THEIR ACCESS IN AND OUT. WE SHOULD START AT $300 TO $400 BILLION A YEAR, AND CHARGE ANOTHER $4 BILLION FOR EVERY DOLLAR INCREASE IN THE PRICE OF OIL.
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realitytrumpsbull
two 'alves of coconut!
09:41 PM on 11/12/2007
Well, in your remote mountain villages and whatnot, there's another thing you can do
besides drive your car: Walk. You know,
that old saying, 'everyone wants to go back
to nature, but nobody wants to walk'. Well,
buck the trend.

Let's talk, for a moment, about all this
wonderful dependency-inducing 'progress'.
Ok, running water, that was probably a plus,
but muni water systems didn't really 'hit'
until what, the 1880's or so, before it was
you, that bucket, and the pot-belly stove if
you wanted that hot bath or shower, beats
jumping in the water trough, anyway, so
now we've got running water, indoor toilets,
and whatnot, oh, don't forget the electricity
and the gas, natural gas or propane for your
cooking, and of course, the car. Welcome to
the car-based lifestyle, where 'daily driver'
is what just about everyone has, because we
all just about drive daily, anyway it's the
economic Habitrail wheel you're supposed to be
on, and the wierd angle here is that in some
ways, what we really need to do is step OFF
of said wheel in order to rebalance things.
There's ways to do that that won't cause
the planet to grind to a screeching halt yet
still take the 'edge' off of things like
fuel usage. The easiest one? Go find a
second-hand 4-banger minitruck, and fix it up.
Get one that's got a 5-speed overdrive.
Maybe it won't look like much, but it gets
the job done. Utility. Not 'sport-utility',
but utility, as in 'I plan to utilize this
truck to do work'. If you're turning the key
just because you didn't shop very well on
Saturday, you're making, as Arnie might say,
a 'big mistake'. Ah yes, Ahnoldt, the
Hummer guy...governator of the 'green' state,
well, turning green anyway from breathing the
smog, but here's another cool aspect of all of
this, there'a 'thumper' diesel bike that's
supposed to get 100 MPG. Travel thirty miles
for one dollar, roughly. All else fails,
there's basics like shoe leather...die yuppie
scum etc...LOL
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09:31 PM on 11/12/2007
This is a situation where families should sit down NOW and make plans because it is going to get alot worse. Look at the expenses and see what can be cut. Cut out buying junk, cable, multible cell phones, soft drinks, movies and fast food. Check out carpooling, biking, buses or walking. I see renting out a spare bedroom or making a separate entrance in your house to get additional income. Buuuut....you know spoiled lazy americans.
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09:23 PM on 11/12/2007
Windfall profit tax NOW on oil companies.