US president Donald Trump caught America by surprise in late September while gabbing with reporters during a visit to the United Nations: “I’ve said let’s not send out the diesel,” he said. “We make a lot of diesel.”
The impulse is understandable. With prices topping $6 per gallon for a fuel widely used in long-haul trucking, rail transport, shipping by sea, and public transportation, everyone who buys anything is taking a new hit to the wallet. Trump would like to see those prices come down before the November midterms.
Other writers have ably explained why an export ban wouldn’t lower prices at the pump, but here’s an AI-generated (Microsoft Copilot) summary for your convenience: “[E]xisting pipeline bottlenecks force regions such as New England and the West Coast to rely on waterborne imports; an export ban would trap Gulf Coast supplies in the region and compel refiners to cut daily output, driving up prices for gasoline, jet fuel, and diesel.”
Quite a few chickens are coming home to roost, and to defecate on all our heads while roosting. The idiotic and illegal war against Iran is driving oil prices up. The ill-considered but never-dying Jones Act, which forbids using foreign-built, foreign-crewed, and foreign-owned ships to transport material between US destinations, holds domestic cargo tonnage down.
Fortunately, Trump seems to be reconsidering a ban. Politico reports that federal officials are looking at other measures, such as encouraging states to put their diesel taxes on hold and/or allowing highway use of tax exempt diesel (identified by its red color and normally only allowed for off-highway uses such as agriculture, construction, and home heating).
That would be a welcome reversal from the usual trend.
As Thomas Sowell wrote in 2013, “sometimes it seems as if there are more solutions than problems. On closer scrutiny, it turns out that many of today’s problems are a result of yesterday’s solutions.”
Government perceives, or even creates a problem. In this case, the US government created the problem of high fuel prices with its war on Iran.
Government intervenes in markets to “solve” the problem.
But that intervention creates new, different problems — usually while failing to solve the previous problems.
And those new problems are addressed with yet more interventions.
At every point in that never-ending loop, things get generally worse than they were before the latest intervention, and even in specific areas it’s usually hard to discern any improvement.
The only way to solve these problems is to reverse course and undo the interventions that caused them in the first place.
The effects usually aren’t instant. If the war on Iran ends today, it may be years before the oil market recovers to steady, cheaper output and delivery.
Furthermore, such reversals aren’t politically palatable. No politician likes to publicly admit that he screwed up and has to pull a U-turn from a policy he previously tried to sell the public on. Trump personally seems even more resistant to doing so than most. Admitting that he lost a war, and in doing so screwed the American public over for no good reason, just doesn’t match his previously revealed temperament.
Bu to be clear here, it’s not just Trump. It’s pretty much every politician you’ll ever encounter. They all want to run your life, and they all do so pretty poorly when given the wheel. Trump is just the case of the moment.
The problem is that political government isn’t a workable substitute for a free market. Markets adapt to actual conditions. Politics adapts to the egomania of politicians. So don’t expect any big breaks on fuel prices any time soon.
Thomas L. Knapp (X: @thomaslknapp | Bluesky: @knappster.bsky.social | Mastodon: @knappster) is director and senior news analyst at the William Lloyd Garrison Center for Libertarian Advocacy Journalism (thegarrisoncenter.org). He lives and works in north central Florida.
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