Bush takes measures against high gas prices
May 3, 2006
President George W. Bush recently announced several measures designed to combat rising fuel costs. Bush ordered the Environmental Protection Agency to suspend clean-air rules, which require consumers to buy a more expensive gasoline mixture. He has also ordered a probe into price gouging and called for an end to tax breaks. In addition, Bush suspended putting oil into the U.S. emergency stockpile, giving companies more time to pay back emergency loans from the Strategic Petroleum Reserve.
According to The Associated Press, a bipartisan House bill to create a price gouging law with stiff penalties including fines maxing out at $150,000 passed Tuesday by an overwhelming 389-34 vote.
Other ideas, like a $100 tax rebate for consumers or removing part or all of the sales tax at the gas pump, have been proposed.
“This announcement could be serious in the sense that the president is going against his financial supporters to investigate, but this might only be lip service. Regardless, gas prices will be a key factor in the upcoming election and the success of these programs will help to shape the election,” said Brendon Swedlow, assistant professor of political science.
Economics professor Jeff Reynolds said the government should be trying to solve problems by alternative means.
“What most people do not know is that the government already conducts periodic analysis into price gouging and has stepped up these efforts since Hurricane Katrina,” Reynolds said.
According to Reynolds, the solution can be found by addressing the core of the problem.
“Also, while the tax rebate or the tax cut could help Americans in the short term, it does not address the real issue,” Reynolds said. “If we want to come to terms with high gas prices, we need to slow consumption. Unfortunately, our entire infrastructure is based on oil.”
The price of gas also may cause some people to become desperate for money to pay for fuel.
“When the gas prices first increased, many more people became desperate for gas money to get to work and were coming into the store and selling things to pay for gas. However, it has since stabilized and it seems people are coping better,” said Debbie Ebert of Bargain Addict, 109 N. Seventh St.
Local response to oil prices has been somewhat mixed — many don’t like the high gas prices and are skeptical of the solutions proposed.
“I don’t think any of the proposals benefit anybody, but a few rich people. And even if they give citizens a tax break or a rebate, we will still be paying for it eventually in other ways,” said John Truty, a graduate student in adult education.
One student said these are band-aid solution that don’t solve the problem.
“The solutions proposed by this administration are too little too late, they are trying to cure the symptom, without treating the disease. What this country really needs is renewable alternative energy,” said Cyril Embil, a graduate student in international relations.