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Obama Knows Gas Prices A Problem For Reelection, Even If Republicans Do Not

Noah Rothman
PoliticOlogy

On Thursday, President Obama delivered his second speech in a week addressing rising gas prices and telling his audience that there is no “sliver bullet” to bring down gas prices. He added that his Republican opponents who suggest that the United States could drill its way out of this crisis are being mendacious.

Obama’s focus on rising gas prices, and his administration’s repeated calls to eliminate tax subsidies to gas and oil companies that help fund exploration, betray the White House’s understanding that rising pump prices could imperil his reelection chances. But while the president seems aware of the political peril that rising gas prices represent to his electoral chances, Republicans (with the exception of Newt Gingrich, who has made gas prices a centerpiece of his campaign) have not yet begun to focus on this issue.

Gas prices as a metric of consumer confidence have a long track record of driving down presidential approval numbers.

President Obama made a big issue of rising gas prices before the bottom fell out of the housing market in 2008. He described President Bush’s oil policy and the rapidly rising gas prices in the summer of 2008 as “the tyranny of oil in our time.”

During the 2004 election, rising gas prices were the subject of coordinated attacks on President Bush by the Democratic National Committee. DNC Chairman Terry McAuliffe routinely attacked the president for his links to the Texas oil industry – inferring that high gas prices were a preferential policy of his administration to help his political allies profit.

"The Bush administration is in the pocket of big oil, and it is hurting Americans in the pocketbook," McAuliffe said in 2004. "They are so deep in the pocket of big oil, we need to drill down just to find them."

The attacks on Bush over prices at the pump did not affect this loss on Election Day, but it did not take long for gas prices to catch up to Bush’s job approval rating.

A 2005 CBS News poll (which asked voters their opinions of the “gas/oil crisis” at a time when the national average hovered around $2.50/gallon) directly correlated President Bush’s rapidly falling job approval numbers with the price of gas. Their findings were echoed in an ABC News poll from the same period.

Of course, the history of gas-prices-as-campaign-issue goes back much farther than that. In 2000, George W. Bush attacked Al Gore and the Clinton administration for rising gas prices. Gore’s campaign responded with the familiar charge that Bush himself profited from gas price hikes ($2.26/gallon average).

The prices of gasoline and heating oil was the dominant issue of the 1980 election campaign and many attribute President Carter’s loss to Ronald Reagan to high pump prices ($3.37/gallon average)

Of course, gas prices rising or falling do not directly relate to an incumbent party’s victory or defeat at the polls.

George H. W. Bush lost reelection in 1992 even as gas prices declined to pre-OPEC crisis levels. In fact, a study by Nate Silver in the New York Times from last year shows that there is really little direct correlation between gas prices and an incumbent president’s reelection. The downward pressure that gas prices put on GDP growth is a far better indicator of electoral success by incumbent parties in election years.

Obama is correct in some ways, there is no silver bullet and drilling would not immediately solved our problems (although, I recall having this debate 10 years ago when the opposition said drilling was not an option because it would take a decade to get to market). But the president committed a major error by being unable to control the narrative surrounding his administration’s rejection of most of the Keystone XL Pipeline. In political terms, this is an easily exploited mistake that can be used to augment the most potent caricatures of the president as an aloof progressive who is beholden to special interest groups at the expense of average consumers.

This problem is compounded by Energy Sec. Steven Chu’s admission that the administration’s goals of moving most Americans over to consuming renewable energy is aided by high gas prices not reducing the price of oil in the short term.

In a Congressional hearing last week, when asked by Rep. Alan Nunnelee (R-MS) if the administration’s goal was to get the price of gasoline down to palatable levels Chu responded, “no, the overall goal is to decrease our dependency on oil, to build and strengthen our economy.”

"Somehow we have to figure out how to boost the price of gasoline to the levels in Europe" Chu said in 2008. In Europe, prices regularly hover around $8 - $9/gallon.

Chu’s candid admissions combined with the Keystone controversy make for a strong argument in Republican’s hands. Republicans could make that argument; it would provoke predictably toxic levels of outrage among Obama’s political allies, but the message would resonate with voters. Obama knows this.

So, why do most Republicans seem so cautious on the matter, especially when prices are likely to only go up between now and the peak of driving season this summer? Possibly, because gas prices are so closely linked to global crude oil prices which America has little control over, it is entirely possible that prices could decrease as rapidly as they have increased. If tension in the Middle East boil over and conflict breaks out, the pressure on suppliers to increase production and release reserves would be overwhelming and could drive prices down.

Even without this nightmare scenario, notoriously volatile crude prices could collapse of their own accord, handing Obama an unearned political victory.

Whatever the reason, the GOP is wasting a political opportunity. Obama is attempting to own the gas prices issue and is aggressively and preemptively taking on his opponents for making gas prices an issue. Obama may not be able to overcome the fundamental problem, rising gas prices under his watch, but he is attempting to command the narrative.

So far, Obama is winning this battle in the war of 2012.

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