So, Santorum said what?

A couple weeks ago, I listed several things that Rick Santorum has said that I thought were somewhat over the top or even outrageous. A good friend of mine did not see anything wrong with any of the statements that I listed. Well, today in Lansing, Michigan Rick Santorum said, “We went into a recession in 2008 because of gasoline prices. The bubble burst in housing because people cannot pay their mortgages because they’re looking at four dollars a gallon gasoline. And look what happened, economic decline.”

Now this is simply flat-out nuts. There is no self-respecting economist in the United States who is going to sign onto this theory that gas prices caused the great recession. Here are the gas prices over the last 60 months.

From Gasbuddy.com

According to the government, the great recession started in December of 2007. Gas prices didn’t start to rise until April or March of 2008. The timeframe is all wrong. Of course, if gas prices were truly the cause of the great recession, when gas prices fell in late 2008 and early 2009, the economy should have picked right back up immediately. That didn’t happen.

The exact cause of the great recession is a tale of complex financial tools (credit default swaps, CDO’s, synthetic CDO’s and mortgage-backed securities) and massive over-leveraging. The great recession had little or nothing to do with gas prices. I don’t know what Rick Santorum is smoking, but when I have a week off I would like to have a kilo of it. I guess for Rick desperate times call for desperate measures. He has to win Michigan or his bid for the presidency is over.

  • EBE

    Those who know him say Santorum simply isn’t very smart.
    And, the people who he is speaking to don’t care if what he says is right, correct or smart.  Scary isn’t it?

  • For reasons that aren’t clear to me, I would like to think that someone who has had all of that education is at least fairly bright. I may be wrong. (I like to think the best of people, a stupid progressive trait.) What I do know is that he is trying to appeal to emotions. He is trying to get folks stirred up. He is trying to recreate the passion that the Tea Party had back in 2009. He will do anything to capture that craziness. The key for him is to get people riled up. Then we don’t think straight. Then we are raw nerves yelling at our neighbors to vote for Santorum or die.

  • Jeff Stager

     In September 2008, Barack Obama’s”Nobel-prize winning physicist” of an
    Energy Secretary, Steven Chu, told the Wall Street Journal: “Somehow we
    have to figure out how to boost the price of gasoline to the levels in
    Europe.”

    In 2008, then-candidate Barack Obama admitted that,
    like his future Energy Secretary Mr. Chu, he believed that high gas
    prices would be a good thing because they would force Americans to ween
    themselves off of oil, but that he would have “preferred a gradual
    adjustment.” biggovernment.com

  • So what’s your point? Dr. Chu was making a point and I think that he was correct. He was stating that higher gas prices we, as a nation, would push harder to develop alternative fuels that the average american can use every day. President Obama was making the same point. Don[t you think that’s true? If we had $5 per gallon gas we would be pushing for tons of different alternative energies? Neither he nor Dr. Chu stated that it was a goal of the Obama administration to push gas prices up. You aren’t pushing some conspiracy theory that the Obama administration is secretly playing with gas prices behind the scene are you?

    Finally, the point of this post was that Rick Santorum said somethings about the economy and gas prices that simply were true. You didn’t address that in this comment so I guess that you agree with me that Rick was way off base. 

    Thanks for your comments.