Halfway through 2008, during the Presidency of George W. Bush, the average price of gas in the U.S. was one dollar and sixty one cents. Take a second to remember those halcyon days of old, but when you're doing that, also think about the fact that between 2008 and 2010, 39 percent of people were "either unemployed, had negative equity in their house, or had been in arrears with their house payments," according to the National Bureau of Economic Research. In addition, between 2007 and 2008, home sales and home prices dropped by 12 percent and 4.5 percent, respectively. Nothing was going right.
At least gas prices were low! Well, yes, but this was a sign of, as President Obama says, "an economy on the verge of collapse." Michael Canes, the chief economist of the American Petroleum Institute in 2011, asserts that "rapid and sustained reduction in oil prices that began in 2008 and extended beyond occurred because the world economy began to slow down and ultimately experience a deep recession. This is one way to reduce gas prices, but not a very attractive one." When Newt Gingrich claimed the increase in gas prices was the President's fault during his campaign for the republican presidential nomination this past year, he was wrong. The Wall Street Journal sums it up nicely: "Gingrich ignored the basic fact about U.S. gas prices: They are largely fixed by the price of crude oil, which is determined by global supply and demand....When Mr. Obama was inaugurated, demand (for gasoline) was weak due to the recession. But now it's stronger, and thus the price is higher." Gas prices depend on a global market, and this will remain true whether or not America becomes energy independent. The facts are, if prices go up because of increased demand in the Middle East, they will do the same here. If they go down globally, as they did during the Recession, they will go down here.
If this is true, why have Newt Gingrich, Fox News, and Governor Mitt Romney accused Obama's "failing policies" as the reason for this spike in gasoline costs? Gas prices are highly visible. Whenever Americans pump gas, they no doubt complain about the sight of the price rising so quickly while the gallons of gas go up slow and end up low. Any halfway decent politician will understand this and exploit it. Here lies one of the many issues within our political system today - the lack of research and knowledge resulting from opportunism which comes from politicians and spreads to the American people. Politicians don't need to know their stuff as long as they have a basic understanding of what Americans hate. On a purely emotional basis, I agree with Romney and Gingrich - nobody likes high gas prices - but I know that the price of gas is not the President's fault, therefore it is a moot point.
Where else does high visibility help and hurt certain politicians? The income tax rebate of 2008 enacted by George W. Bush was primarily a tax cut for the middle class. Bush pulled a genius political move with this though. He sent receivers of the tax cut actual checks in the mail, reminding them that "Hey, your prez here, I'm literally handing you money with this tax cut. I know you love me." This would have worked too, if it wasn't for that meddling deficit, and the Lehman Brothers, and Fannie Mae and Freddie Mac. In President Obama's first term he also offered the middle class a 3,600 dollar tax cut, but he didn't send a check which people could hold, and see, and understand, yes, Obama did in fact cut our taxes. Maybe President Obama should have sent a check, because without it people do not truly know if Governor Romney is lying when he says Obama would not cut taxes for the middle class.
Of course, tax cuts have always been a visible issue which politicians use to generate support. "Oh, we get to save money? You'll let us pay less? Of course I'll vote for you!" President Bush took that a step further by handing people the money he saved them. President Obama has to be more visible if people are to believe him, because high visibility, which ironically does not translate to high transparency, is a characteristic of the modern political climate.
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