Connecticut Local Politics

It occurred to me recently when I was driving past the local gas station that even if we got rid of all the federal and state taxes, which combined are $0.623/gallon, we’d barely get under $3.00. In Newington, where I was this weekend, the price would hit $3 even. And then what?

Higher fuel prices are caused by a lot of things, including unrest in the Middle East, the threat of oil production reaching a peak (“peak oil”), the fact that it’s increasingly difficult and therefore more expensive to get at oil, and speculation in the futures market. It’s complicated. The upshot, though, is that oil costs nearly $100/barrel more than it did a decade ago.

So it gets more expensive to drive. Trucking and shipping get more expensive. Therefore food gets more expensive. And things may yet get worse.

The federal government is giving us some cash, but really, what’s that going to accomplish besides a few less unsold Playstation 3s or perhaps putting off the inevitable for a few months? It’s kind of pitiful that this is what passes for government policy.

Is there a plan to deal with any of this? Should we tank the expensive disaster that is ethanol? Should we invest heavily in alternative fuels? Should price controls be imposed on food, like is happening in other countries? Economists say they’re a bad idea, but I have lost faith in economists. Where, exactly, were they last year? Aren’t crises like these what they’re supposed to help us avoid? Maybe the economy is so huge and complicated (since it consists of billions of people, each with his or her own self-interest to pursue) that it can’t be accurately predicted by anyone.

And where are the candidates? John McCain wants to get rid of the federal tax on gas, but we’ve already seen just how pointless that would be. At best, we’d be back where we were six months ago, except that now transportation funding would dry up. Still, it’s something; it’s a lot less clear what Obama and Clinton would do.

So here we are. It costs more to eat and to get to work, and our paychecks aren’t keeping up. The government seems to be at a loss.

…Now what?