The Gas Test

As the price of gas passes $4 on its way to $5 a gallon, the finger pointing in Washington, D.C. has reached a frenzy as politicians rush to place blame. “Wall Street profiteers!” “Speculators!” “Big Oil!”

As if on cue, the administration has launched another investigation into charges that speculators are manipulating oil prices – a perennial response of elected officials when gas prices stir anger among the electorate. Previous investigations have found no conspiracies.

What is causing our high gas prices? To answer that question, let’s start with the basics — something I call, “The Gas Test...