Rebate Checks - They Will Vanish Into Thin Gas!

The one wonderful aspect of learning the basics of economics is that there is so much humor that the politicians continually provide us when they try to describe why economy is doing so badly and what should be done to fix the problem. Today senators McCain and Clinton reiterated why the gas tax holiday should be provided during the peak summer season while President Bush lambasted congress for stalling on the drilling in the ANWR and the proposed increases in refining capacity. It is amazing how the greedy hedge fund managers have brought on both the credit (due to sub-prime) and gas price crises and our illustrious politicians ignore the root cause and try to solve multi trillion dollar problems with band aids of political pandering. Here are two links from the public radio that give you the real economics of the gas price problem.

http://www.npr.org/blogs/news/2008/04/economists_gas_tax_holiday_no.html http://marketplace.publicradio.org/display/web/2008/04/29/bush_moon_q/

The bottom line - both the rebate checks that we will all receive, and the gas tax holiday - will most likely benefit the gas companies and the speculators of petroleum prices.