Santorum says gasoline prices caused recession

[Southern Senator North Carolina Yankee]

I was listening to Todd Schnitt the day of the MI primary (which was where he criticized the Romney campaign's organization which I agreed with and related here a couple of days ago). On there, someone called in and claimed that the housing market collapse was caused by the rise in gas prices causing the decling in SUV and Truck sales. This led to layoffs and shift cancellations which then caused people to default on their mortgages. Schnitt, who was broadcasting from MI that day but is normally a Tampa show, explained that while that may have been the case in MI locally, the overall housing problem was in the works for years and decades before prices rose in 2008.

So while ignorant, it may have been a strategy to take advantage of ignorance and limited vision of the housing problem on the part of the MI electorate. Of course Santorum has little top level staff and certainly no strategy beyond spouting far right nonesense for the purpose of rallying the base to his side. Thus it being a purposeful strategy probably gives Rick too much credit.

This isn't the first time I have heard this notion. An energy expert on Armstrong Williams back in 2009, claimed energy prices were the primary cause and TN radio talker Ben Ferguson back in 2010. It is often spouted as a way to defend opposition to bailouts and supports for struggling home owners.

That said, it is not an entirely incorrect. It did have a impact because it contributed to the decline in consumer spending in 2008. But the vast bulk of that decline was baked into the pie by the collapse in credit which started in 2007, which in turn resulted from the housing collapse beginning in mid 2006. I do think Santorum has a good understanding of economics, though not as good as Mitt's. The problem is that he is completely unscripted and makes this stuff up as he goes. It is the opposite extreme of Mitt's problem and it is of no better a circumstance. When you have candidates who pride themselves on not having top level staff like Cain, Gingrich, and Santorum, this is a problem which you will get from that. It is one of the reasons no tea party candidate has survived. The campaign fundamentals still exist regardles of whether one is tea party and the penalties for failing to note those rules is dire for a candidate. The lack of an organized TP candidate, simply because they have changed every six weeks but also because of a purposefull choice to be unscripted to curry some kind of populist favor, is exactly why Romney is going to win this nomination now.

[Southern Senator North Carolina Yankee]

Over simplification, but certainly gas prices have a horrendous affect on the working poor and lower middle-class. It's hard to work a low paying job, pay for a mortgage and utilities (not that rent is any different), and spend 300 dollars a month on gasoline (in some instances obviously lower, in others much more). Extreme increases in heating prices, while not directly related to oil, are another killer. Not to mention that these kinds of gas prices make everything more expensive, most obvious of all being food. 

Both parties squeeze the poor in different ways, this is just the most glaring example of how out of touch the Democrats are with the people they like to claim as their primary constituents. It's not an issue of Obama being able to control oil prices, but it is an issue of the Democratic establishment's refusal to consider any options, and their appearing to show absolutely no concern.

There are more people out there struggling to get by due to gas prices than there are members of the Sierra Club. It's not just stupid, it's stupid politics for the Dems to not even give the appearance of wanting to do something about it.

'Big Oil' seems to be doing just fine. Why not impose a windfall tax on their profits and pass the revenues from that down to consumers in the form of gas tax relief?

Did I say anything about wanting to help 'Big Oil'?

I think taxes on the oil companies (coupled with price controls so that it can't be passed on the consumer) to partially fund subsidies, along opening up new areas for exploration, would be a huge step in the right direction. Just taxing oil companies though isn't going to help anyone, especially if it's merely to fund some kind of tax cut. It's the price at the pump that matters for people struggling now.

The only way you're going to get any Republicans to go along with taxes and subsidies is to allow greater drilling. The Democrats aren't willing to do that.

No, my point is they seem to be doing just fine; hence, my suggestion of a windfall tax on their profits but then in itself, if feasible, is only a short-term solution

Oh, and on drilling, I'd be more to the Republicans than Democrats, in addition to supporting feasible alternatives. BTW, ain't drilling in the US at record high levels right now? If so, the Democrats can't be that obstructionist

From what I have seen it is the delayed result of the areas Bush opened up, leased and permitted that are just now coming on line. Even Mary Landrieu is calling the Obama administration a hinderence to future production because of the delayed and denied leases and closed off lands. She even called out Salazar (and the administration by exention) for using dishonest rhetoric to distract from Obama's record on this.

[Southern Senator North Carolina Yankee]

Actually, didn't the price shock happen immediately before the bubble burst?

Gas prices peaked in August of 2008. Housing began its collapse back in 2006 and the credit crunch began in mid 2007, followed by the actually start of the recession in December 2007. The Gas price peak did precede the collapse of Lehman which people seem to equate with the bubble bursting. That was more of a realization point. A realization of just how screwed we were economically.

[Southern Senator North Carolina Yankee]

George Will also had a good point about this a week ago on Stephenapolos (Sorry George for butchering your name. ). He said that it is a psychological connection between high gas prices and bad times. People associate high gas prices with 1970's and the perceived bad times then. They associate the high gas prices with the recession and bad times to follow in 2008.

So Rick was trying to channel this and connect. But he fumbled the ball considerably, because of his weaknesses and lack of top level staff.

[Southern Senator North Carolina Yankee]

This isn't the first time I have heard this notion. An energy expert on Armstrong Williams back in 2009, claimed energy prices were the primary cause and TN radio talker Ben Ferguson back in 2010. It is often spouted as a way to defend opposition to bailouts and supports for struggling home owners.

Lol, Santorum is on Ferguson's radio show right now.

[Southern Senator North Carolina Yankee]

This isn't the first time I have heard this notion. An energy expert on Armstrong Williams back in 2009, claimed energy prices were the primary cause and TN radio talker Ben Ferguson back in 2010. It is often spouted as a way to defend opposition to bailouts and supports for struggling home owners.

Lol, Santorum is on Ferguson's radio show right now.

He sounds angry and pissed off.

He got hit hard on FNS this morning. Stumbled over the fact that he gave only 2% of his income to charity, tried to blame it on Bella, then Wallace revealed that he gave only 3% back in 2007. He also completely fell apart over the "Obama is snob" and trying to explain that. On top of all that he was sick and it showed.