Later today President Obama will make a speech in New Hampshire aimed squarely at voters who can’t help but notice the recent rise in gasoline prices.  But will his words reflect his policy (lack thereof to be precise) or his politics?

President Obama is expected to call for increased domestic production.  Similarly he’s expected to once again demonize a target easy to pick on – Big Oil.  It’ll probably go something like this:

“It’s their fault we are paying high gas prices.  We need to remove their subsidies and raise their taxes.”

Is this good policy?  Heck, is it any kind of policy?

President Obama knows there’s nothing he can do in the short-term to impact gasoline prices.  He continues the tradition of prior administrations of having no real or meaningful energy policy.  Presidents love to speak about energy independence and renewable fuels but they never do anything meaningful to achieve their stated goals.

Today’s speech will be about politics – plain and simple.  It’ll be another attempt to distract Americans from the basic economic fundamental that when you raise the cost of production (whether by market forces or, in this case, by governmental imposition of additional taxes) you decrease the supply.  All else equal decreased supply results in higher prices.

If President Obama truly cared about doing something to lower gasoline prices he’d make a very different speech today.  Instead he’ll look to score points with voters and solidify his base.  Yet again Washington shows us ‘leadership’ is anything but.