(TotalConservative.com) – California Governor Gavin Newsom wants more government interference in energy production, his latest bit of radical leftism is SBX1-2, a California bill to limit the profit potential of oil companies. Republicans, their expert witnesses, and even some Democrats found the proposal ridiculous, especially while California is experiencing an energy crisis.
The hearing last week on Wednesday, February 22nd was to discuss the proposal to make an additional tax penalty should a company be found guilty of “excessive” gas price increases. State Senator Nancy Skinner (D) authored the legislation last December.
Business Professor Michael Mische testified that the legislation was “not in the best interests” of Californians nor would it help reduce prices at the pump. He also said it was bad for the long-term economy of California and that there were plenty of other options legislators could explore. He further added that the bill would “make matters worse” for consumers and it would hamper the exploration of new technologies.
Mische further testified his belief that the passage of the bill would cause an increase in prices, not a decrease, the ostensible intention behind the bill.
Western States Petroleum Association President and CEO Catherine-Reheis-Boyd agreed, suggesting that the problem was not profits but rather an overall decrease in supply. She proffered an alternative perspective, that by increasing supply prices would naturally go down. Perhaps Newsome and the Democrats require a basic lesson in economics.
Even Democrat State Senator Steve Bradford acknowledged that whatever they ultimately decide, their first priority is to make sure that their legislation will help and not further harm consumers. Sen. Dave Min pointed out that there’s a misbegotten belief among Californians that profit-seeking was to blame when they literally have no evidence to suggest such a thing.
Newsom doubled down after the hearing, blaming “big oil lobbyists,” claiming they “refused to provide answers” and used “scare tactics” like stating basic economic realities like if a supply goes down while demand goes up prices will also rise. The only big scary thing in that hearing was Newsom’s willingness to ignore reality while pushing insane policies that will harm consumers.
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