Joe Gilbertson | Jun 19, 2022 | 10
Biden owns gas price hike … and inflation
President Trump’s energy policies made the United States an energy independent nation. America actually joined the league of oil export nations. Domestic gasoline was affordable – if not cheap. And the pump prices were not exerting inflationary pressures. Inflation was in check.
Enter President Biden, stage left – with his plan to end all fossil fuel production and use ASAP.
Biden immediately shut down the Keystone Pipeline that would have enhanced America’s oil independency. He set in place polices to end fracking – the innovation that made America oil independent.
He reversed Trump by approving the Russian pipeline to Germany – a decision that helped support the Russian economy and kills off America’s ability to sell oil to Germany — if we were producing surpluses like before.
Biden has put the United States on the world market as a buyer at a time that the Middle East oil cartel will not increase production. That means higher prices for American consumers.
Both Biden’s domestic and international oil decisions have been disastrous for the Untied States. The sharp rise in fuel prices from the refinery impacts on virtually every other sector of the American economy. Gas and oil are cost factors in virtually all goods and services. Goods travel on a highway of fuel. Planes fly on fuel. Boats float on fuel. Commercial buildings heat and cool with fuel. Electricity is generated with fuel. Electric cars get recharged by fossil fuel. Your pizza is cooked and delivered by fuel.
This is a particular pernicious price increase because it is occurring when pump prices generally come down. A typical peak is reached in August. That means that the increase is NOT seasonal. Quite the contrary. The surge in gas prices is running counter to the general trend – and the forecast is for a continuing increase through the end of October and beyond.
Those leaps in the cost of gasoline that you see every other day can appropriately be considered a “Biden gas tax.” His policies have put us at the mercy of the international oil producers – and they are not known for their mercy.
What Biden has created is a two-punch hit on the cost of gas. One is the result of general inflationary policies – better know has big spending in Washington – and the other is his cutting back on American drilling and refining.
Biden’s trillion-dollar Infrastructure Bill is only half paid for – and that is if you believe the government accounting. There is no way that the Reconciliation Bill will be paid for. The claim that it is, is a big lie. And that means if there is a $3.5 trillion or a $1.5 trillion dollar bill, it will fuel more inflation.
In many ways, the cost of gas is the canary in the mine. It signals a broad range of economic problems that will hit the average consumers very had. Biden’s political problem is that the average American will feel the pain no matter how many times he puts his trademark positive spin on it.
So, there ‘tis.