DJIA – Buffalopundit

Gas and the Dow

October 20, 2012 buffalopundit One comment

During the second Presidential debate, this exchange happened:

MR. ROMNEY:…If you’re paying less than you paid a year or two ago, why, then the strategy is working. But you’re paying more. When the president took office, the price of gasoline here in Nassau County was about a buck eighty-six a gallon. Now it’s four bucks a gallon. Price of electricity is up.

If the president’s energy policies are working, you’re going to see the cost of energy come down. I will fight to create more energy in this country to get America energy-secure. And part of that is bringing in a pipeline of oil from Canada, taking advantage of the oil and coal we have here, drilling offshore in Alaska, drilling offshore in Virginia where the people want it.

MS. CROWLEY: Let me —

MR. ROMNEY: Those things will get us the energy we need.

MS. CROWLEY: Mr. President, could you address — because we did finally get to gas prices here — could you address what the governor said, which is: If your energy policy was working, the price of gasoline would not be $4 a gallon here. Is that true?

PRESIDENT OBAMA: Well, think about what the governor — think about what the governor just said. He said when I took office, the price of gasoline was 1.80 (dollars), 1.86 (dollars). Why is that? Because the economy was on the verge of collapse; because we were about to go through the worst recession since the Great Depression as a consequence of some of the same policies that Governor Romney is now promoting. So it’s conceivable that Governor Romney could bring down gas prices, because with his policies we might be back in that same mess. (Audience murmurs.)

I’ve seen a bunch of Republicans make this charge – that it’s Obama’s fault that gas prices have skyrocketed from a reasonable $1.80/gallon to the current $4.00/gallon. But that is so fundamentally misleading – such a basic symptom of Romnesia.

If it’s Obama’s fault that gas prices have gone from $1.80/gal in February 2009 to $4.00/gal in October 2013, then it’s also his fault that the Dow Jones Industrial Average has skyrocketed from 8,000 to 13,300 in that same time.