Reply #37: That's not necessarily true... The Repugs are responsible for higher gas..

[mikelewis]

Gas prices are high because the dollar is weak and the cost to subsidize our gasoline is rising. Opec has increased production but the American dollar isn't worth what it used to be. China didn't just wake up and start buying cars all of a sudden. The reason our gas is so high is because of inflation. No one wants to admit it but look around. Look at the price of everything, it's going up and up. This is on purpose and a direct result of Republican policies and thier pandering to the Republican Elite.

Now, why would the Republican Elite want a weak dollar? Because the higher inflation is, the less they have to pay for labor which consitutes the largest cost of any company. If you are making $30,000 and inflation rises but your wage stays the same, your cost to the company is less. That's what deficits do to an economy, they chisel away at the value of the dollar. This is deliberate and an intentional side effect of the tax cuts.

Don't buy the crap they are selling about China increasing demand, it's true to a certain extent but it's not the whole picture. High gas prices means drilling in ANWAR, high gas prices means higher profits for gas companies, high gas prices means people have to work harder and get less. To the Republican Elite, this is the American Dream.

What people aren't talking about is the true cost we have to pay for gasoline. "The federal government subsidizes the oil industry with numerous tax breaks and government protection programs worth billions of dollars annually. These benefits are designed to ensure that domestic oil companies can compete with international producers and that gasoline remains cheap for American consumers."

The war in Iraq has increased the amount we are paying to protect our oil interests. Those $80+ billion dollar supplementals are but a drop in the bucket compared to the "$7 trillion present value dollars over the last 30 years" that we have spent to protect our access to the middle east oil supplies. There is a cost to this protection. Until we have a viable alternative to transportation energy, we are going to see ever increasing numbers at the pumps.

China and India are increasing thier conusmption, this is true and that current rate is at roughly 7.5% per year combined. The entire world is increasing it's consumption of oil by 1.9% per year. The amount and availability is not currently the problem. The problem is our ability or willingness to subsidize gasoline.

"According to the National Defense Council Foundation, the economic penalties of America's oil dependence total $297.2 to $304.9 billion annually. If reflected at the gasoline pump, these “hidden costs” would raise the price of a gallon of gasoline to over $5.28. A fill-up would be over $105."

The Republicans do not want to continue subsidizing gasoline at the rate we have been. The Bush tax cuts took a huge bite out of our ability to continue to subsidize this humongus bill and the war in Iraq is raising the price tag on defending access to middle east oil. They are selling the China/India excuse as a reason but it simply does not pan out. The true reason we are paying more is because of tax cuts; plain and simple. So yes, we can blame Republicans for higher gas prices.

Link: http://www.iags.org/costofoil.html