Tuesday, May 13, 2008

What's Taxes Have to Do with the Price of Gasoline?

Thomas Sowell suggests that both the media and politicians are playing games with gasoline prices, mindlessly (and unrelentingly) blaming George W. Bush and the oil companies without asking basic questions about supply and demand, costs of exploration, and really awkward questions like this one: "If corporate "greed" is the explanation for high gasoline prices, why are the government's taxes not an even bigger sign of "greed" on the part of politicians-- since taxes add more to the price of gasoline than oil company profits do?"

Read more of Sowell's excellent column here.