Every time there is an increase in gas prices, Democratic administrations like to pretend that there is some nefarious form of manipulation going on. I don’t know if it is because Democratic administrations are staffed with people who don’t understand markets, or whether it is because Democratic administrations like to cater to conspiracy sentiments that suggest that speculators and price fixers are behind the price increases. Probably a combination of the two. In any event, the Obama Administration has decided to engage in Kabuki theater over gas prices by launching an explanation into why they have risen.
Of course, the explanation for the gas price increase is readily available for anyone willing to make the least effort to discover it. As the story notes, “[g]as prices have risen steadily as a result of tensions in the Middle East and northern Africa and rising demand from China and other emerging economies.” Which makes sense, actually, seeing as how this explanation takes into account the laws of supply and demand. If only the Obama Administration did the same; after doing so, it would likely find that its investigation is not necessary at all.
Fearless prediction of the day: The Obama Administration’s “investigation” into the matter will find absolutely no evidence of manipulation, or price-fixing. Second fearless prediction of the day: That won’t stop the Obama Administration–or any future Democratic administration–from launching politically opportune investigations into price-fixing that have no basis in fact whatsoever in the future.