During the last debate, President Obama said the only reason gas prices were low when he took office was because the economy was rotten. He claims that today’s high gas prices are a sign of an improved economy. He’s either uninformed, or he’s lying, because he’s definitely wrong.
Obama’s theory is based on the assumption that an improved economy boosts demand and, with it, prices. The problem is, consumption has trended steadily downward since 2009, which the Energy Department attributes to the higher prices, economic conditions and more efficient vehicles. That means other factors are sending the per-gallon price upward, Lesser said.
“Is economic growth driving higher gasoline prices?” Lesser said. “No.”
According to the U.S. Energy Information Administration, the price of a barrel of oil has nearly tripled from the a barrel it cost when President Obama took the oath of office in January 2009. But that’s not from economic growth, they say. Oil costs more because of instability in the Middle East and the decline of the dollar – the currency to which oil prices are pegged.
Commodity analyst Dave Judday said the Obama administration’s reluctance to lease federal lands to oil and gas drillers, blocking of the Keystone XL Pipeline and refusal to allow more offshore drilling hasn’t helped.
“It took only a few months of Obama energy policy to drive up gas prices,” Judday wrote in The Weekly Standard after the debate. “Energy remains expensive because we’re still pursuing the same policies—or as the president might say, we’re “back in the same mess.” (Read More)