Gasbag Governor Doyle

gas·bag n.

1. An expansible bag for holding gas.
2. Slang. One given to empty or boastful talk.
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Yesterday, Wisconsin Governor Jim Doyle showed what an incredible gasbag he can be.

PRESS RELEASE

Governor Doyle today launched a joint petition with the state of Michigan that urges the President and Congress to cap the excessive profits of oil companies. Governor Doyle also urged Congress and the President to repeal $10 billion in taxpayer subsidies to oil and gas companies.

“Middle-class families across Wisconsin are being squeezed at the pump, while big oil companies are reaping billions in record-setting profits,” Governor Doyle said. “The President’s suggestions do not go far enough. Regular people need real relief and the only way to do it is to find a way to cap the outrageous profits of oil companies. I ask every family in Wisconsin who is getting squeezed by these ridiculous prices to go to http://www.lowergasprices.wi.gov/ and sign this petition. We need to send a clear message to Washington and to the boardrooms of big oil that these excessive profits have got to stop.”

...Last week, ExxonMobil, which just became the largest corporation in the world, announced profits of over $8.4 billion since the beginning of the year. The entire industry reaps an average of over $300 million of profit per day.

...“We asked big oil to explain their ridiculous profits and we heard their answer loud and clear: big oil is raising prices simply because no one is stopping them,” said Governor Doyle. “It's time for President Bush and leaders in Washington to get off the sidelines and get in the game.”

This petition is just goofy.

Obviously, Doyle hopes to reap personal political benefits by this stunt, but he's actually revealing that he is completely clueless when it comes to economics.

Mark M. Alexander points out that the "Government to the rescue!" approach to high gas prices is a joke. Ridiculous measures, silly "We feel your pain at the pump" stuff, are being suggested by elected officials as they demonize big oil.

By blaming big oil for high prices, Doyle is really just deflecting from the fact that government is raking in the dough.

Alexander explains:

Oil companies are recording record profits -- on record sales. In a free-market economy, record sales often result in record profits. Notably, however, the real price gouger is the government. According to the Tax Foundation, in the last three decades government has collected more than $1.34 trillion (inflation adjusted) in gasoline-tax revenues -- "more than twice the amount of domestic profits earned by major U.S. oil companies during the same period."

So what really accounts for high fuel prices? The answer is elementary -- what economist Milton Friedman called "world market supply and demand for limited resources."

On the supply side, current world production is at about 85 million barrels per day, and new exploration around the world has kept that production pace steady. The U.S. consumes about 25 percent of that world production. About 45 percent of what we consume is produced domestically, and 55 percent imported from seven key suppliers: Mexico (17.9 percent), Canada (17.3 percent), Saudi Arabia (14.3 percent), Nigeria (13.6 percent), Venezuela (11.9 percent), Angola (4.7 percent) and Iraq (4.5 percent).

On the demand side, booming economies in China, India and the U.S. (yes, it is booming despite Demo claims) are competing for a limited supply of oil -- and will be as long as the economy stays strong.

He concludes:

All the partisan political posturing aside, the real "crisis" at the fuel pump is about world supply and demand, however disconcerting that might be.

Clearly, Doyle doesn't get it.

Getting people to sign his petition will provide him with a list of voters that he can exploit for campaign contributions, but it will accomplish nothing to alter the realities of the world market and supply and demand.

Signing the petition will DO ABSOLUTELY NOTHING to impact prices at the pump.

Doyle said, "We asked big oil to explain their ridiculous profits and we heard their answer loud and clear: big oil is raising prices simply because no one is stopping them."

That is simply wrong.

As Alexander notes, TAXES were "more than twice the amount of domestic profits earned by major U.S. oil companies during the same period."

Doyle's petition totally disregards the government's role in gouging the public on gas prices.

If you agree with me that consumers need relief now, please join me in signing this online petition to the President urging him to cap excessive gasoline profits and eliminate $10 billion worth of taxpayer giveaways.

I agree with Doyle that consumers need relief now.

What can he do to provide relief for Wisconsinites?

Put a cap on taxes.

Give us break, Governor Doyle.