Looney Liberal of the Week: Chuck Schumer
WASHINGTON, D.C. -- This week's award goes to Chuckie "Schmuckie" Schumer (D-NY). This week Schumer announced that the cause for the run up in gasoline prices was directly attributable to "Big Oil". Specifically, he said that there was a lack of competition, and implicitly he suggested that "a handful of giant oil companies" are manipulating prices.
Schumer's solution? ..."Get tough on big oil". Schumer said he plans to offer an amendment to the upcoming supplemental bill "that will require a complete examination as to whether or not we should break up the big oil companies". Of course! Why didn't we think of that before? Breaking up Ma Bell was such a wonderful example of how "Big Government" can help streamline our economy.
Now here is a man who apparently knows nothing about economics. Doesn't Schumer know that the price of gasoline is market-driven? Doesn't Schumer know that gasoline futures are traded on the NYMEX? Doesn't Schumer know that prices are essentially set by market traders who evaluate factors driving supply and demand? Does Schumer even know what "supply and demand" is? Has Schumer forgotten that in 2005 following Hurricane Katrina gasoline prices were just as high as they are today?
The following charts show the NYMEX gasoline futures and the actual retail cost of gasoline including all taxes. Notice any similarities for the period April 2005 through April 2006? Hmmmm. I wonder if there might be any relationship?