I try not to get political here, but this is something I know a decent amount about, and felt I had to comment on. Heard on NPR this morning:

Hillary Clinton: "I would immediately lower gas prices by temporarily suspending the gas tax for consumers and businesses. We will pay for it by imposing a windfall profits tax on the big oil companies."

NPR Commentary: "Barack Obama opposes the gas tax holiday saying it would be ineffective and that it would ultimately raise demand and gas prices."

Obama is right on this. There's no two ways about it.

I have some experience with this type of issue in my own industry. When the whiz kids at the NBB decided that they could lower the price of biodiesel by creating a tax incentive, they were falling for the same flawed logic. Time proved them wrong, as biodiesel prices never went anywhere but up, and the windfall that came with the incentives created a "dot-palm bubble" (thank Lyle for that excellent phrase) in which our industry became focused on dividing and plundering. We are still trying to recover from the fallout from that.

Supply and demand are what dictate prices (i.e. what the market will pay), and incentives are not going to change that ultimate price. Therefore, companies just end up charging the same thing and pocketing the portion that would have (one could argue should have) gone to Uncle Sam. In the case of the gas tax, we're talking about the money that maintains highways, among other services that people would generally agree are essential. Would you rather that money go to Exxon, Chevron, Shell, etc.?

Leaving aside the nice dream of windfall profits taxes (no- today's politicians will never let something like that happen in a meaningful way), Clinton should understand this. Supply and demand is pretty simple, and Clinton has enough business experience to know how it works. Which is why I believe this is a sad example of desperate pandering.

Unfortunately, people will probably get all excited about someone who wants to "immediately lower gas prices". It's a crock of shit, but people will buy it.

The worst part about this, which I've commented on before, is that it encourages consumption, in a time when we really need to be, have to be, must be encouraging conservation.

If high fuel prices are to be the #1 issue in America, as the media is blaring loudly at the moment, then how long before we drill ANWR, the California coast, and everywhere else, for the piddly amounts of atmosphere destroyer that can be found there?

I had an interesting experience yesterday. I gave a production plant tour to two gentlemen from Nigeria, one of whom works for Chevron. It was part of Rotary International's Group Study Exchange program, which sends 25-35 year-old business people around the world to gain insights on foreign business.

Both men kept asking me why people would use biodiesel? I tried to explain all the reasons. Whenever I got to anything that we would call an "environmental" reason, they were at a loss. One of them suggested that people in the West have gotten lazy and want to just enjoy the world around them, without working. Why not just drill the California coast, and ANWR, they asked.

I'm fond of telling people how biodiesel cuts across party lines, because it makes sense on economic, security, and environmental grounds. I generally expect Republicans to be on board, just as much as Democrats. It was weird to be talking to folks who didn't conform with my expectations. It was also humbling.

I did give them a lot of info, and to be fair, they enjoyed the tour, and asked a lot of good questions. Perhaps they were more impressed with the concept of biodiesel than I realize.

I can't help imagining that if I gave the same tour to Hillary Clinton, she would, as she's done before, extol the virtues of biodiesel right along with me, and then go back on the campaign trail spouting the garbage I've referred to. These things are all connected, but people like her profit on never making those connections.

I can forgive the Nigerians, because it was clear that I was up against a different worldview, and I respect that. An ongoing conversation with them would educate me and them both.

But I can't forgive Senator Clinton.

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UPDATE: Much, much more conversation on this over at this Daily Kos thread. Looks like the pundits agree with me. There's also this great Obama quote:

"This isn't an idea designed to get you through the summer, it's an idea designed to get them through an election."