Gov. Gavin Newsom has more in common with former President Jimmy Carter than trademark hair and a toothy smile. Apparently, their understanding of economics and the energy market is equally poor. They both foolishly believe that financially punishing oil companies will ease consumers’ pain at the pump.
In what was an obvious effort to draw public attention away from decades of policy failure, Newsom began vilifying the oil industry a couple of months ago when he told Californians that “oil companies are ripping you off” and making “record profits” “at your expense.”
“I’m calling for a NEW windfall tax exclusively on oil companies,” Newsom tweeted in late September. “If they won’t lower their prices we will do it for them.
“The $$ will go directly back to you.”
Kerry Jackson
Opinion
On Wednesday, Newsom issued a proclamation calling a special legislative session, asking lawmakers to “deter price gouging by oil companies by imposing a financial penalty on excessive margins” and empower state bureaucrats to “more closely review and evaluate costs, profits, and pricing” in oil production. He has yet to release any specific legislative proposals as of this writing.
Apparently, there are no economics refresher courses required to govern California. If there were, Newsom would know that higher prices are indications of scarcity, not corporate money-grubbing.
Maybe Newsom’s threat is nothing more than the “politicization of this…
