Economic Illiteracy, California Style

California State Senate, 2018

A Berkeley economist has got the “woke” doofuses running the California madhouse – aka state capitol – in a tizzy over the state’s high gas prices.  The number cruncher gave them an excuse for a pogrom [mass violence against a minority] against the oil industry in the state, shape-shifting blame from themselves to the buccaneers of capitalism.  Now that’s quite a trick.

Gasoline prices have jumped nearly 60 cents in the past month in Southern California. The average price of $4.30 for a gallon of self-serve regular in Los Angeles County Thursday is the highest in California. The statewide average is $4.20 a gallon. (ED JOYCE/KPCC)

Below is a map of current gas prices by county.  Notice the flaming red of California.

Let me count the ways that the screwballs – not Exxon/Mobil – have shafted the California motorist, starting with cap-and-trade.  Back in 2015, people knew that the thing would hike fuel prices 11-13 cents per gallon by its lonesome.  The dream was to dent global warming; the reality is to dent residents’ pocketbooks. (see here)

Let’s not forget that the state wacks each gallon of gas with a 41.7 cents/gal. levy – soon to rise to 43.7 cents.  Couple that with the 18.4 cents federal tax and a commuter starts right out of the gate with each squeeze of the pump handle over 61 cents in the hole, second highest in the nation.

California seems to be always red on these matters.  This map sets the combined gas tax burden in the state at almost 66 cents per gallon as of 2015:

It doesn’t stop there.  California demands boutique fuels: unique fuel blends just for the not-so-golden state.  In fuel-speak, it’s called CARBOB and according to experts, “CARBOB is even more expensive, and is the main reason why California gasoline prices are typically higher than anywhere else in the country.” (see here)

The result is a stunted and mangled market within the narrow confines of one state.  Those kind of markets don’t work very well.  You can’t impose some of the highest gas taxes, pursue the fantasy of counteracting China and India with California’s adherence to a cap-and-trade straitjacket, and play footsie with fuel blends and not get jacked at the pump.  Get real.

It’s simple economics, or – better yet – it’s simple math.  I guess it goes to the difference between knowing economics and math and actually believing in them.  Apparently, some people think that they can suspend the rules with no ill-effects.

How about a mandatory blood test for those folks in the clown car called the California State Legislature?

Shriner clowns or the California State Legislature in a parade?

RogerG

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