James Fallows on the McCain-Clinton "gas tax holiday" scheme:
The pandering and ignorance-across-party-lines represented by the John McCain-Hillary Clinton united front for a temporary reduction in the gasoline tax should make Americans hold their heads in their hands and moan. No one who has thought about this issue thinks that it will actually reduce prices or -- more important -- help the the people disproportionately hurt by $100+/barrel oil and $4 gasoline. And to the extent it has any effect on America's long-term approach to energy policy, transportation, oil dependence, and climate change, the effect will be perverse.
I can imagine that John McCain, who boasts about his sketchy command of economics, might consider this a good idea. But the master of policy, Hillary Clinton??
Even Hillary supporter Paul Krugman is scratching his beard:
Is the supply of gasoline really fixed? For this coming summer, it is. Refineries normally run flat out in the summer, the season of peak driving. Any elasticity in the supply comes earlier in the year, when refiners decide how much to put in inventories. The McCain/Clinton gas tax proposal comes too late for that. So it’s Econ 101: the tax cut really goes to the oil companies.
The Clinton twist is that she proposes paying for the revenue loss with an excess profits tax on oil companies. In one pocket, out the other. So it’s pointless, not evil. But it is pointless, and disappointing.
I agree that Hillary is too intelligent and knowledgeable to believe that this is a good idea. St. John, of course, is neither. So the only conclusion is that Hillary is engaging in a standard pander, possibly a double-pander: Fool the rubes with a simplistic "fix" for economic woes and maybe throw a few more subsidized dollars to the oil companies.
And everybody knows they need it.
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