While sides bicker, prices rise

While sides bicker, prices rise

Dayton Daily News: As if sudden spikes in gasoline prices aren’t irritating and painful enough, their arrival just as people are planning driving trips doubles the pain. On top of that, these hikes always seem to be accompanied by the news that oil company profits are reaching new highs.

U.S. Rep. Dennis Kucinich, D-Cleveland, wants a tax on windfall oil profits, an idea that invariably comes up when prices jump quickly or significantly. He says his proposal would reduce the price of gas.

President Barack Obama’s approach is more balanced.

“The truth is, there’s no silver bullet than can bring down gas prices right away,” he said. But, “the attorney general’s putting together a team whose job it will be to root out any cases of fraud or manipulation in the oil markets that might affect gas prices. We are going to make sure that no one is taking advantage.”

Combination of factors

The current spike does not result from a conspiracy by the oil companies to get windfall profits. It results from events in the Mideast and from continuing increases in demand from around the world, especially as the recession recedes.

The constant, confident repetition by the political warriors that the hard actions preferred by the other side — whether spending cuts, tax increases, more regulation or higher prices — fosters the suspicion that no hard actions are necessary.