Next week as part of his final budget request President Obama will propose a $10/barrel charge on oil. The fee would be paid by oil companies which of course means it will be paid by consumers as surely the oil companies will pass along the cost to end users.

The fee’s purported goal is thievery to fund clean transportation projects such as high-speed railways, autonomous cars and other travel systems aimed at reducing emissions from the nation’s transportation system.

A White House statement reads, “By placing a fee on oil, the president’s plan creates a clear incentive for private sector innovation to reduce our reliance on oil and at the same time invests in clean energy technologies that will power our future.”

Gee, that’s swell.

Back in the real world markets dictate behavior. Remember the spike in gas prices post-Katrina? Americans traded in their gas-guzzling SUVs en masse in favor of fuel-efficient cars.

The markets – NOT government – ought to decide where dollars are spent. The proposed oil fee introduces an externality which distorts markets.

Manhattan rent control is a great example. Capping rents below market leads to too much demand and too little supply.

We need not be Democrat, Republican, Communist, Libertarian, liberal, conservative, moderate or however we self-identify. We simply need a basic understanding of economics to know this recycled Robin Hood idea is bad policy.