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Friday, August 1, 2008

How Energy Became a Republican Issue and the Lessons

When gas prices really exploded this year and passed $3 and the $4 a gallon in nearly a blink of an eye, I just assumed that this would be another issue that would work against Republicans. First, it appears the country is blaming the Republicans for every ill of the country right now. Health care, mortgages, jobs, and the overall economy have become an albatross for Republicans and will likely contribute to a rather bloody bath in November. They have the all too earned reputation as being a bit too close to the oil companies as well.

However, a funny thing happened as this issue unfolded. As gas prices continued to rise without a top, it appears as though the voters generally decided to give each party a clean slate. I believe the voters saw politicians from both parties responsible for the mess we are in, and what most voters were concerned about was the future not the past. The Democrats fired the first salvo when they introduced this bill.

Saved by Senate Republicans, big oil companies dodged an attempt Tuesday to slap them with a windfall profits tax and take away billions of dollars in tax breaks in response to the record gasoline prices that have the nation fuming.

GOP senators shoved aside the Democratic proposal, arguing that punishingBig Oil won't do a thing to lower the $4-a-gallon-price of gasoline that is sending economic waves across the country. High prices at the pump are threatening everything from summer vacations to Meals on Wheels deliveries to the elderly.

The Democratic energy package would have imposed a 25 percent tax on any "unreasonable" profits of the five largest U.S. oil companies, which together made$36 billion during the first three months of the year. It also would have given the government more power to address oil market speculation, opened the way for antitrust actions against countries belonging to the OPEC oil cartel, and made energy price gouging a federal crime.


This bill didn't merely fail in the legislative arena but also in the arena of public opinion. On gasoline, more than just about any other issue, the public is aware, educated, and thus they demand tangible action. The problem with the Democrat's bill is that there was no clear link between the legislative action and gas prices. The Democrats thought that by punishing the oil companies they would fall on the side of the consumers. Except the consumers weren't interested in punishment but rather in tangible steps to lower gas prices. The problem with the bill is that it gave the nebulous more spending on alternative energy. The public wasn't buying it because we have been spending on alternative energy for years. It has offered us no relief in the current crisis.

This lead directly to Newt Gingrich and his drill here drill now pay less campaign. The Republicans have long been for more domestic drilling but the public didn't notice until gas prices really began to sky rocked. Drill here drill now worked on several levels. The slogan is short, sweet and to the point. Second, linking more domestic drilling to lower gas prices can be explained by simple supply and demand. That the public understood and suddenly the Republicans had an issue with overwhelming support. Once John McCain got on board the party began to finally speak with one voice on something.

Had the Democrats jumped on the bandwagon though, this issue would have only given the Republicans a marginal and likely short term advantage. Instead, the Democrats lined up one after another to argue against domestic drilling. They all argued against its effectiveness, and many like Nancy Pelosi argued for other priorities besides dropping gas prices in their argument.

By not only refusing to go along with the tangible step of domestic drilling, but furthermore, by making it seem as though there are things more important than lowering gas prices, the Democrats painted themselves as politicians not altogether concerned with the pocket books of the average American.

Of course, the irony is that domestic drilling does nothing to solve the long term problem of our dependence on oil. Furthermore, even with domestic drilling, we are still overwhelmingly relying on foreign oil. In other words, while domestic drilling has become a favorite issue, it is a minor solution to a major problem. Politically this is of little consequence, because what matters is that it is a tangible solution. It's no different than the political value of the flawed universal health care solution. Because it is a tangible solution. Furthermore, since the other side has a muddled message, universal health care becomes an excellent political tool. Because the Republicans became the first to offer a tangible solution, the issue has become theirs. It's really no different than health care, mortgages, or the economy, where the Democrats offered tangible solutions while the Republicans' message was muddled.

Thus, the lesson is simple. Get out front of an issue and be the first to offer a solution. Speak with one voice, and make your solution simple and easy to understand.

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