Michelle Bachmann recently made a bold statement while out stumping for president in South Carolina, “Under President Bachmann you will see gasoline come down below $2 a gallon again. That will happen. The day that the president became president gasoline was $1.79 a gallon,” Bachmann said. “Look what it is today.”
Really? Is this a politician who wants to edge her opponents out of the way with outlandish promises? It’s nothing new for a politician to say anything to get elected. That brings to mind a famous quote, “Read my lips, no new taxes.”
Many people remember the line and also remember that Bush did, in fact, raise taxes.
Fellow presidential candidate Jon Huntsman called Bachmann out, “I just don't know what world that comment would come from, you know? We live in the real world. It's grounded in reality. And gas prices just aren't going to rebound like that. But just as we are in a static world, that is completely unrealistic. And, again, it's talking about things that, you know, may pander to a particular group or sound good at the time, but it just simply is not founded in reality.”
In reality, supply and demand is one main factor in the price of a barrel of crude. Since China and India are exponentially increasing the number of gas powered vehicles, the U.S. would have no means of countering this precursor. The U.S. does consume 25% of the world’s oil, and there is no end in sight for our demand. Hybrid and alternative fuel cars account for less that 3% of the vehicles in the U.S. George Bush signed into law the Energy Policy Act of 2005 that gave people up to $3,400 as a tax credit with a purchase of the most efficient hybrid cars. This went away with the Obama administration. In its place legislators passed new credits for plug-in hybrids and electric cars only.
Another large determiner of the price of gas is the declining value of the U.S. dollar. With the recent shenanigans in Congress about raising the debt ceiling, and a weak economy, the dollar has lost 40% of its value in the last 6 years. The price for a barrel of crude is based on the U.S. dollar.
Are we really being gullible, or do you really believe that if Bachmann was elected she could lower the price of gas to below $2 per gallon?