Recently I wrote
Incentives matter — politicians are incentivized to get reelected. Which they quite reasonably interpret to mean that when the media begin emphasizing a “problem” then the politician is supposed to “fix it”.
On the gas price comedy being performed in the US Congress, Harvard economist Ed Glaeser wrote
HIGH ENERGY prices can bring out the best in people and firms, but they often seem to bring out the worst in politicians. Whether or not greed is good, there is plenty to be said for a little thriftiness. High prices, painful as they may be, do more to encourage energy conservation than replaying every one of President Carter’s sweater-clad exhortations to turn down the heat.
But politicians sometimes react to high oil prices as if the Bill of Rights had bestowed on Americans the inalienable right to cheap fuel. Elected solons are now considering a Home Energy Affordability Tax Relief Act, which promises households a tax credit equal to one third of a home’s energy costs up to $500. Some congressmen have called for restricting energy markets in an attempt to curb “speculation.” Earlier in the election season, two presidential candidates came out for a temporary summer holiday for gas taxes.
RTWT.
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