It's about the leadership, stupid.
From Robert Reich
Even though the summer gas tax holiday is pure hokum, it polls well, which is why HRC and John McCain are pushing it. That Barack Obama is not in favor of it despite its positive polling numbers speaks volumes about the kind of president he’ll be – and the kind of president we’d otherwise get from McCain and HRC.
posted by Lee at 12:12 PM
4 Comments:
The problem with the logic of your statement is that Robert Reich is the pure hokum in the equation. He is a blowhard. He yabbers constantly about all sorts of things - trying to promote himself.
I agree that the gas tax is a silly idea. Obama's numbers are baloney. The assumption that a reduction in tax will not have any effect on prices is not borne out by any reasonable economic analysis - were Reich a real scholar he would know that. Obviously in a commodity based market with increasing demand the price effects may be less visible but Reich's assumption that the oil companies would simply keep the profits (shared by Hillary) is simply mistaken.
The question I have about Obama's stance is not whether he is right but whether (since he supported similar measures when he was in the Illinois legislature) his stance is pure politics. The chance of adopting any measure like this before summer is zero - so all of the positions here are fundamentally politically motivated. Obama is just a bit better at shading his motives.
So, you raise two issues, Reich's thesis is hokum and Obama is a politician.
I'm not clear on what's hokum.
If prices go down, won't demand go up? And if demand goes up, then prices follow? (assuming supply remains constrained). So, after X amount of time, the price for gas is right where we started, and amount that previously went to us, via taxes, is going to the oil industry.
Obama is a politician. Noted. (Like the whole running for President thing wasn't a clue. :-) )
I like that people learn and adapt. This whole "Well, you said this out loud 20 years ago, so that must be your stance in perpetuity" doesn't make sense to me.
So, more Krugman, this time on the relationship between gas prices and driving habits:
http://krugman.blogs.nytimes.com/2008/05/09/prices-and-gasoline-demand/
Dr. Tax, the problem with your logic is that you resort to an ad hominem attack on Reich, then agree with his statement that the tax holiday is nonsense.
I'm not sure what argument you're trying to make other than that you don't generally agree with Reich.
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