Clinton wants higher prices at the pump


The Senator overlooks basic economics in her search for a scapegoat
Hillary Clinton is arrogant, there is no doubt about that. She keeps proving it again and again. Pay attention to this bit.

Clinton touched on a range of issues at the gatherings, including health care, food safety and the war in Iraq. But she also managed to squeeze in several items of particular interest to Iowa voters, such as her support for the production of ethanol, a corn-based fuel additive largely produced in Iowa.

"Oil companies won't even put ethanol pumps at their gas stations. They need to be required to do that," she said, responding to a question about the high price of gasoline. She drew applause from the crowd when she said she would introduced legislation requiring ethanol pumps at filling stations.

Time for a reality check. Congress has no business telling private companies what products they must carry. Let me emphasize that.

Congress has no business telling private companies what products they must carry.

Why is this important?

In this particular case, it's because ethanol costs more but delivers less. A gallon of ethanol is much more expensive than gasoline to produce and delivers less power. But even more importantly, ethanol is not as stable as gasoline. It requires special handling and storage, that means more expense which translates to an increased cost at the pump.

Get that? Hillary wants to introduce legislation which will raise prices at the pump.

At the moment, ethanol only "competes" with gasoline because of heavy government subsidies (which in turn are messing up the world wide prices of grain and meat). To put an ethanol pump at every service station will either require much higher government subsidies or a much higher price.

Let's be generous and say that for every dollar paid out in subsidies, two have to be collected in taxes. My own estimates put that at closer to 1 in 5, but we'll go with the one out of two.

That means that a ten billion dollar subsidy requires twenty billion in new taxes, or even more ever increasing debt.

So not only are we talking higher prices at the pump, there are also higher taxes.

And don't fall for that "only the rich will pay" nonsense. Any higher taxes levied against major corporations will just be passed on to you in higher prices.

All because Hillary wants to use the oil companies as a scapegoat and mess with the free market. Sadly, it's not the first time that Hillary claimed that private companies were just piggy banks for Congress to use as they wished.

So the question you should ask yourself is this. If the Senator from New York doesn't respect any private property except her own, why should she be elected? For anything?

— NeoWayland

Posted: Sat - May 26, 2007 at 04:53 AM  Tag


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