February 27th, 2012
04:04 PM ET
2 years ago

Santorum: High gas prices caused the recession

Lansing, Michigan (CNN) - Rick Santorum argued Monday that it was high gas prices, not dubious lending practices or complex Wall Street trades, which torpedoed the housing market in 2008 and brought on the current prolonged economic slump.

The Republican presidential candidate made the claim at a campaign event in Lansing, Michigan while accusing President Barack Obama of blocking the expansion of domestic energy production.

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"We need to look at the situation with gas prices today," Santorum said. "We went into a recession in 2008 because of gasoline prices. The bubble burst in housing because people couldn't pay their mortgages because they were looking at $4 a gallon gasoline."

"Look at what happened," Santorum continued. "Economic decline. Here we are again. Trying to struggle out of a recession with Barack Obama and the federal government on the backs of business, not letting them grow. And now we have energy prices again, why? Because of government policy."

After the event, however, Santorum sought to clarify his remarks with reporters and described gas prices as a "factor" in the crisis, not necessarily the cause.

"I said that that was a factor. I'm sorry. I will make sure that I will be much more specific when I talk about it," Santorum said.

Asked if he misspoke, Santorum replied: "Energy prices were spiking up in the summer of 2008 and that was a factor."

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Filed under: 2012 • gas prices • Michigan • Rick Santorum
soundoff (91 Responses)
  1. arale norimaki

    Oil companies are in the business for profit. Drilling for or refining more crude domestically won't do anything on the cost of gasoline.The fishy issue is why did TransCanada purchase, order and stockpile $1.9 billion in pipe on the hope that the pipeline would be built.NO company invest $1.9 billion in inventory without a firm deal in hand.

    February 27, 2012 05:19 pm at 5:19 pm |
  2. Darw1n

    Lol, Rick, it's better to keep your mouth shut and be thought a fool..... ah, nevermind.

    February 27, 2012 05:20 pm at 5:20 pm |
  3. mark99er

    If my past post does not get posted I will find some way of holding you responsible for not allowing my rights! There is nothing out of line in my prior un-published post!

    February 27, 2012 05:21 pm at 5:21 pm |
  4. WhereIsPalin

    If only we would have known it was that simple. Santorum and his economic advisors will solve all our problems.

    February 27, 2012 05:21 pm at 5:21 pm |
  5. Peter (CA)

    Truth (or lack there of)–
    I wish you would quit instead of spreading your misinformation. All economic factors played a part in 2008 but even the price of oil was tied to speculators wanting to make quick bucks in the market even though there was plenty of pumping going on around the world.
    Further, if this was a US problem tied to high gas prices, then why was the recession global? What were the GLOBAL factors involved? Banking is the one common factor. The thieves were doing this around the world.

    February 27, 2012 05:26 pm at 5:26 pm |
  6. Truth and Nothing But the Truth

    I guess all of the leftists in here live in government paid housing and never have to pay anything for their housing. They also probably get their free government food and government disability payments (diagnosis: libtard) so can't understand how the whole income and expenses thing works in the real world. The government checks and freebies NEVER stop coming.

    February 27, 2012 05:26 pm at 5:26 pm |
  7. SOUTHERN HOTTIE

    @Truth and Nothing But the Truth
    i quit

    February 27, 2012 05:05 pm at 5:05 pm |

    **************************************************************************************************************************
    We may disagreee, Truth, but come on....quitting? That's so Sarah Palin of you. You should think about coming back.

    February 27, 2012 05:27 pm at 5:27 pm |
  8. once upon a horse

    ok so if this is indeed the case why do you GOPers want to keep the tax breaks and loopholes given Big Oil who of course are going to make record profits once again on these high fuel prices. But of course it's Obama's fault that the oil compaines are doing this.

    February 27, 2012 05:30 pm at 5:30 pm |
  9. dcmisty

    The Repubs keep saying Obama is out of touch...well you know what so are the repubs. This clown sits on a stage and tells those who'd listen that women be forbidden from combat, can't have the pill, catholic school or home schools are the only good education, no one needs to go to college and now he blames the recession on gas prices!! Really Rick?? He needs to take his caveman ideas back to the cave. Too bad the Repubs can't seem to field one decent, relatively intelligent, in touch candidate. I guess it's gonna be 4 more years of Obama!

    February 27, 2012 05:33 pm at 5:33 pm |
  10. Jorge UU Boosh

    WHO believes this guy?!? I mean, come on...

    February 27, 2012 05:34 pm at 5:34 pm |
  11. keystnst

    First he argued his point that it was the cause, then when questioned about it he changed it to a factor. And they say Romney flip flops.

    February 27, 2012 05:34 pm at 5:34 pm |
  12. anthony78

    Truth and Nothing, Obama could tell you the sky was blue and you'd still go right along with the Republican knee jerk response and believe it was red. You offer nothing to these conversations. Why are you here? Free speech or to just irritate anyone with actual intelligence.
    Santorum must have forgot everything that happened circa 2005 and forward as far as recessions go. And this is the guy that said aspiring to go to college is snobbery? But then again, JFK speeches make him vomit, I'd hate to see what happens when he googles his own name.

    February 27, 2012 05:36 pm at 5:36 pm |
  13. Pete/Ark

    High fuel prices are NOT the fault of the President...nor does our lack of expanded production. The greatest impact is from the traders who get between producer and refiner,between refiner and distributor,and between distributor and retailer...they produce NOTHING ,but they profit at every level...regulation of commodity trading is minimal ,but profits are great. Oh, Mr.Santorums party OPPOSES further regulation.

    February 27, 2012 05:38 pm at 5:38 pm |
  14. CoJo

    yep Lehman went bankrup due to gas prices, yep AIG had a major crash not due to credit default swaps( CDS ) it was due to oil prices, yep Goldman Sachs (and other invement banks) crashed due to oil prices... yep all true

    February 27, 2012 05:39 pm at 5:39 pm |
  15. Truth and Nothing But the Truth

    Peter (CA) - What were the GLOBAL factors involved? Banking is the one common factor. The thieves were doing this around the world.
    ===========================================================================================
    Oivay... They were the ones stuck holding a ton of worthless subprime mortgages as investments. You need to learn how the financial system works.

    February 27, 2012 05:41 pm at 5:41 pm |
  16. DC from NJ

    Just another Santorium delusion.....YAWN!

    February 27, 2012 05:43 pm at 5:43 pm |
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