Why do Americans believe falling Gasoline prices is political manipulation?

Question

Retired farmer Jim Mohr of Lexington, Ill.,
"But I think the big important reason is Republicans want to get elected," Mohr, 66, said while filling up for $2.17 a gallon. "They think getting the prices down is going to help get some more incumbents re-elected."

source: USA today

midwestbruin: good point, I like how you cited that spread......talking facts.

Answer 1

Because the price of oil has fallen only 14% from its peak, whereas retail gas prices have fallen 22%. Sounds like some industry is helping out their best buddy.

Answer 2

All republicans don't support high gas prices. It doesn't help anyone but the oil industry. There haven't been any major natural disasters, no stories about refineries going up in flames or even oil spills in the ocean. It doesn't make sense why the prices are so high and no one can offer a reasonable explanation. Everyone is a little p.o.'ed including Congress. The legislation may have passed through the House with only 284-141 vote, but the goal is to ultimately make price gouging illegal through federal law by holding more oil companies liable. We may not see immediate results, but we will see a step toward progress.

Answer 3

Because it's an election year. Gas and oil prices have been used in the past to sway the directions of votes. This is not the first time nor will it be the last. This manipulation has been going on since the time of John Paul Getty and continues today. Prices went up drastically after Katrina, the oil companies pocketed windfall profits and kept it up. The Republican party let them. The Republicans favor big business and the rich and not the shrinking middle class nor the poor. To quote the gentleman above, Jim Mohr its about incumbents getting re-elected.

Answer 4

You don't think it is just a little bit odd that we dealt with $3+ all summer and 1-2 months before the elections (that the Republicans are all worried about) the prices of oil and gasoline drop??
This is a very wide spread belief and doesn't it make sense??

Answer 5

Conspiracy Theorists abound.
Also people like to blame something for their troubles. In this case, it can't be their addiction to oil; it must be a political plot. Politics were involved, but it was worldwide politics, and politics that we had few control over.

The recent surge in gas prices was caused by worldwide fear of what Iran MIGHT do. It was feared that in Hezbollah's war against Israel Iran might cut off its supply of oil to the world. If that happened it would have little effect on the American supply of oil, the US gets most of its oil from Canada and then its own reserves. But, a lot of industrial nations like Japan require Middle East oil. The problem is that when the price of oil rises, all the oil companies have to raise their price as well. If they don’t then their will be a run on oil from that company, and that company will run out of it; leading to an oil shortage. Since the actual price to bring the oil to market didn’t change the oil companies made record profits.

There was an oil shortage in the 1970s and it caused such a panic that gas had to be rationed in many places. I remember waiting in lines over a mile long. The oil companies made record profits so Congress enacted Windfall Profit Taxes, which were used against the oil companies recently. This shortage was caused by several things, one of which was OPEC flexing its muscles.

Now we have a short break from the high price of oil, but the continuing unrest in the Middle East is going to cause those prices to jump again. WHEN Iran builds the atomic bomb then they will “sell” it to Hezbollah, a terrorists group they founded in Lebanon during 1982. Hezbollah will waste no time using it against Israel and trying to use it against the US. An atomic war in the Middle East could easily turn into a World War as nations scramble to get their oil. This will cause the prices of oil to skyrocket. So the price of oil will rise again and it will approach the $4.00 a gallon mark. If the war gets nasty, and I don’t see how it can’t, then we could see gas prices rise to $4.00+.

The recent increase in the price of oil was caused by politics, but not by the Republicans. Frankly, they would have been more likely to conspire to reduce the price so it would help business. Sure those that had stock in the oil companies made a profit, but the stock market was suppressed and most business were hurt by the high cost of oil.

Answer 6

Why not? Bush can affect the oil prices through his policy. There is no reason this couldn't be his doing.

Think of it this way: gas price were high because of summer oil prices, foriegn policy tensions between the US and Iran, hurricane disruptions, etc.

Bush could ease oil prices simply by easing tensions with Iran. And HE DID a few weeks ago. If you have been listening, easing market concerns over the situation with Iran is one of the major reasons the media in the US has listed for the declining oil prices.

In other words, Bush has helped the oil prices to come down by changing his foriegn policies.

Answer 7

Well, a month ago prices were 60 cents higher, at least, and the Congressional approval rating was around 30%. Now, after the price drop, Congressional approval ratings are in the 50% range.

So, either its pure and absolutely coincidence, that just happens to make it very likely that most incumbents will be re-elected, or there's something to the idea.

Answer 8

Because it's as logical as 2+2=4.

Answer 9

Right before an election, good things always happen economically. After the election, things get bad again.... It's a trend. That's why I don't trust politicians much.

Answer 10

there is no way the US could manipulate the prices like that. They would literally have to GIVE the oil companies all of our oil reserves.. and not likely that will happen