UPDATE: Sen. Bayh: Nation's debt partly to blame for high gas prices

by Leanne Tokars (ltokars@wsbt.com)

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Indiana Senator Evan Bayh visited South Bend

Indiana Senator Evan Bayh visited South Bend on Tuesday, March 18, 2008. (WSBT photo)

By Beth Boehne

SOUTH BEND — Indiana Senator Evan Bayh stopped in South Bend Tuesday and went on the attack over the nation's debt.

Bayh calls Washington fiscally irresponsible, and says one of the results of being in so much debt is it makes the dollar worth less, and in return we see high gas prices.

"Running up these debts means the dollar will be cheaper, gasoline will be more expensive, interest rates will be higher and our economy will be more sluggish," said Bayh.

He says the new federal budget will add at least $2 trillion to the country's debt in the next 5 years. Already the U.S. is more than $9 million in debt.

"You can't spend beyond your means year after year after year without it coming back to bite you, and that's what we have going on right now, " exclaimed Bayh.

WSBT asked Senator Bayh how we can get some relief at the pump.

He says there's no easy answer, but he offered some ways to at least stabilize the prices over the next year.

He says we should diversify our fuel sources and produce more ethanol here at home. He also says we need to give more incentives to build high mileage vehicles here.

He also focused on the Strategic Petroleum Reserve, where millions of barrels of oil are stored in case of a crisis.

"That's very important. I'm all for maintaining it; I’m actually for adding to it,” Sen. Bayh said. “But one of things we can do right now is to stop buying oil to put into our strategic reserve. That will bring demand down and maybe a few pennies here or there and get the cost at the pump down. So the government shouldn't be buying oil that it doesn't need today, right now, with prices so high. That's one thing we can do."

The idea of making more high mileage vehicles sounds good to Sarah Donohue at Jordan Toyota. She says when the gas prices jumped, so too did the demand for vehicles that get more miles per gallon.

"The Prius, about two to three weeks ago, we had 15 to 18 on our lot. Now, we are down to three," said Donohue.

Along with a struggling economy also comes concerns over jobs. Hundreds of local employees have been laid off in the last month.

WSBT asked Senator Bayh what he can do to protect jobs.

He pointed the finger at China. Bayh says the most important thing the U.S. can do is strengthen its stance with China to create a more level playing field.

Senator Bayh will accompany Senator Hillary Clinton as she campaigns in Indiana on Thursday.

He says he supports Clinton because he's known her for 20 years and feels her strengths and experience is what's needed now.

Monday, Mar 31 at 10:47 PM stunned wrote ...

wow. so, the guy swings by to tell us all: 1) what a horrible job he's doing 2) we spend too much 3) to fix everything, we need to go out and buy new cars 4) it's all china's fault for letting us give them our money what the...??? oh, and Jim - the high milk prices are because everyone stopped buying milk made with the bst hormone. Give it a rest, ok?

Monday, Mar 31 at 10:29 PM John wrote ...

Although I am not an economist, I agree with Sen. Bayh's conclusion, since the Euro and the price of oil have moved in lockstep, ie, as the dollar falls, oil rises. In the same way that the Euro is bought by investors attempting to protect the value of their dollar assets (while the dollar is debased by disastrous national policies), oil is also used as a vehicle for betting against the dollar. I hope Sen. Bayh's recommentations are well received, altough they may well be "bitter medicine".

Wednesday, Mar 19 at 3:02 PM Fed up wrote ...

Ed if you were only making 11 cents a gallon profit you wouldn’t be in business long. Fifty years ago my father had a gas station and he was lucky to make a penny a gallon profit. You really don’t expect me to believe fifty years later you are only making $ .11 a gallon didn’t you mean $1.20 a gallon? If any one believes Ed I have some ocean front property in southern Michigan for sale real cheap!

Wednesday, Mar 19 at 7:40 AM Fred wrote ...

Just listen to Anonymous at 9:43. First he says calls us idiots. Then he says not to criticize Bayh, who says regarding the Strategic Petroleum Reserve, "I'm all for maintaining it; I’m actually for adding to it". Then Anonymous says "Storing oil and dropping interest rates do not work", contradicting what Bayh just said. Anonymous, I think you need to "Wake up".

Tuesday, Mar 18 at 10:35 PM Ed wrote ...

Fed up; FYI station owners make less then $.12 a gallon on average. The reason they have the convenience stores is to actually make a living. Fact is several stations without those stores have went out of business. The real racket is the oil companies, OPEC and our rich politicians.

Tuesday, Mar 18 at 10:24 PM Ed wrote ...

The debt is what happens when we want the Government to pay for all these give away programs. They only have what they get out of our pockets and then we all cry about high taxes. However, I do not buy that the high gas prices are connected to the nations debt. The real problem is the politicians own oil company stock and those same oil companies fund their campaigns; funny they never tell us that part of the story. Time to FIRE them ALL!

Tuesday, Mar 18 at 9:43 PM Anonymous wrote ...

Some of you people are not only idiots but part of the reason this country is in the shape it's in. Why would you criticize a man for saying something people don't want to hear but need to! It's the TRUTH! we didn't get where we are over night and most of us won't live long enought o see things back the way they should be. That doen't mean we should not do the right thing for up and coming generations. Storing oil and dropping interest rates do not work. That's why we keep doing them! Wake up!

Tuesday, Mar 18 at 4:34 PM Anonymous wrote ...

Did he really come to South Bend to tell us what congress (of which he is a part and his party is in control) is doing wrong?

Tuesday, Mar 18 at 4:25 PM Pam wrote ...

Our County needs to start pumping for oil in our own country, we have so much that is untouched, I am all for finding another alternative for energy but at least touch into some of our oil for now to help ease the pain until another alternative can be made. Lets show those arab countries that we do not need them anymore and then see how low the price of the barrel comes down, beleave me it would not take to much to wake them up and if they still want to sell to us they will.

Tuesday, Mar 18 at 4:23 PM Bruce wrote ...

Wow that is a new twist!!! Where in the world did that come from???? The reason they keep raising prices is because they can! As long as oil companies have great riches they will always control things. They are deep in every politicians pocket! And that isn't changing anytime soon.

Tuesday, Mar 18 at 4:16 PM This Is Ridiculous! wrote ...

Stavalize the prices over the next year? We can't afford them now! The prices are already way up and once that happens they will never go back down to where they were before 9/11.

Tuesday, Mar 18 at 2:49 PM MS wrote ...

Sure build high mileage vehicles - who can afford to buy one of them. How about all these highly paid and well to do politicians give up some of their income - let it go back into our county and state - maybe then our taxes would be lower. Lets just keep taxing is the only answer we hear - soon there won't be anyone left to tax (houses and income) or the ones left will refuse to spend and then less taxes will come in. Oh wait - their answer will be raise taxes again. Enough already.

Tuesday, Mar 18 at 2:41 PM Fred wrote ...

What about St. Joe County? Are they "fiscally irresponsible" too?

Tuesday, Mar 18 at 1:54 PM Joseph Wishin wrote ...

Another politicion that thinks we are all idiots. I think we all know what the problem is; When will our leaders stop trying to blame someone and actually do something about it.

Tuesday, Mar 18 at 1:40 PM Fed up wrote ...

What the oil companies are doing to this country amounts to nothing more than ORGANIZED CRIME! Anytime an oil company can claim 45 BILLION dollars in profit for a quarter while our gas prices along with everything else we touch continues to go up and our politicians do nothing about it there is definitely something wrong. Lets not forget the station owners, they are making a healthy profit also.

Tuesday, Mar 18 at 1:11 PM Anonymous wrote ...

Is St. Joseph County "fiscally irresponsible" for having so much debt, Mr. Bayh?

Tuesday, Mar 18 at 12:34 PM Jim wrote ...

Ethanol is very inefficient! It also takes grains away from food production which raises food prices! $5 Milk coming due to ethanol!

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