Gas prices have been tumbling. They are reaching the prices that I paid when I was an undergrad ten years ago. Incredible.
But this puts a kink in Obama's plans. He intended to tax the windfall profits from the oil companies and use that money to pay for his social agenda. Now, the gas companies have lowered their prices and won't receive those record breaking profits that they received under Bush's laissez-faire policies. This voluntary lowering of the gas prices prevents Obama from setting the precedent of a windfall profits tax on the oil companies and also hampers his social spending plans.
The first post-election chess piece was being moved before the election. Now, we will wait and see how Obama responds.
