Senate Democrats failed to suspend the moratorium on shale oil development in Colorado. They still forbid oil development in Alaska and offshore. This restriction of supply for those who did not take economics 101 has the effect of increasing prices.

Their proposal is to suspend the gas tax which would lower the price by the amount of the tax. Again, for the economic neophytes, decreasing the price has the effect of stimulating demand, ecouraging more consumption.

The real demand of course is from two giant economies, China and India, who are entering their own industrial and consumer revolutions.

The Democrats promised to do something about oil prices when they took Congress. Their only action so far has served only to further increase prices. While they fail to increase production in the US, they want to pressure the Saudis to increase their production. Perhaps they feel we should become more economically dependent on the Middle East terrorist funders.

Perhaps they would like to lobby the Chinese to drive less so that we can keep our gas guzzling SUV’s. It makes just as much sense.

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