(FiveNation.com)- Democrats are rightfully being blamed for record-high prices at the gas pump. Some are even trying to propose bills that would put a cap on the price of gas, as a way to ease the burden that many Americans are currently facing.
But, if they end up being successful, one prominent group believes that it could end up being disastrous for the country.
All Republicans in the House voted against the Consumer Fuel Price Gouging Prevention Act, yet it still passed through the lower chamber because it’s controlled by the Democrats. The bill is now being considered over in the Senate, though it’s uncertain if it could get the support of at least 60 members there.
If it does, though, it could lead to some really bad consequences for America, rather than being beneficial.
This week, the Taxpayers Protection Alliance said the bill could end up leading to gas lines from the 1970s returning to the U.S. The tax and spending watchdog group has said the bill would do much more harm than good.
As the group’s executive director, Patrick Hedger, recently explained of the bill:
“It is a thinly veiled attempt to institute price controls. This is a bill that the Democrats, some of the most progressive Democrats, have pushed to essentially give the president and some regulatory agencies authority to cap gasoline prices.
“But, that is the fastest way for us to repeat the 1970s because as expensive as gas is now, it’s available, right? We don’t have shortages of gasoline. The way to create a shortage is by putting a price control in place that encourages people to overconsume and discourages production.”
In other words, the price control could make people go to the pump and get as much as they possibly can to store for later use. At the same time, companies would be disincentivized to produce gas, since it would result in lower profits.
The move by Democrats is eerily similar to one made in the 1970s during the Jimmy Carter administration. Hedger said the White House then tried to fight off “rampant inflation” by putting price controls on gas. That ended up leading to long lines at the gas pump.
Now, the Biden administration seems to be doing the same thing, as inflation has hit a rate that hasn’t been seen in 40 years.
Hedger explained:
“It’s just history repeating itself in such an unfortunate kind of shameless way. No economist worth their weight and salt will tell you that [a price cap] is a good idea. It’s a pure distraction from the fact that the Biden administration has been canceling oil and gas leases, has been antagonizing the industry since day one canceling the Keystone XL pipeline, and that Washington has been printing and spending money with reckless abandon that’s inflating the currency.”
Still, Democrats press on, convinced that passing price controls or spending more money will solve the problems they have directly created by spending too much money.
