McCain & Clinton Flunk Economics 101

Papa says he's gonna fill Ole Bessie up with some of that McClinton gas

John McCain's embrace of a summer gasoline tax holiday is an idea so economically unsound but is such terrific feel-good political theater that Hillary Clinton soon joined him in an effort to pander to voters that will be tough to top. But then it's still six months to the election, so who knows?

Why is suspending the federal gas tax from Memorial Day to Labor Day so unsound?

Because as any economics major knows, there are few commodities more affected by the law of supply and demand than gasoline.

Strong demand and a limited supply of gasoline has led to price increases. Artificially lowering the price will only stimulated more demand, which will inevitably lead to . . . you guessed it, class -- even higher prices.

More here.