A Great Example of Why I Support Obama

Politicians are constantly making laws as a reaction to a situation that do little to alleviate that situation or make it worse.  Good examples include Sarbanes Oxley and the Patriot Act.

John McCain has proposed a gas tax holiday this summer and Hillary Clinton quickly voiced her support.  This makes sense because it makes them look like they're trying to do something for consumers while gas climbs to $4 a gallon.

There are several problems with this idea in my opinion.  First of all, higher gas prices have positive side effects like discouraging the burning of fossil fuels and making alternative energy sources more attractive.  Also, those gas taxes are used to fund certain public services, so either those budgets will have to be cut or governments will have to take on more debt.  The kicker is that much, if not most, of that tax revenue will go to oil companies, not consumers.

I'm pleased to see Barack Obama is going against the tide here, even though it will likely cost him political points.  He must know that this position will likely turn off rural and less affluent voters whom he is currently struggling with.

To be fair, John McCain also has a history of taking positions based on principles even when it might cost him votes, like when he referred to Jerry Falwell and Pat Robertson as "agents of intolerance" in his first presidential campaign (which he has since backpedaled on) and when he told Michigan that the labor jobs it had lost to globalization weren't coming back.

But this gas tax holiday is simply a bad idea, and this is generally the consistent view of economists.  Voters need more politicians who are willing to level with them and cut the pandering BS to move our country forward.