It is becoming clear that President Biden does not understand simple economics. Nowhere is that more clear than in the area of gas and energy prices.
Gas prices have risen roughly 80% just in the last year. Price inflation is something that hits everyone, but hits low income and fixed income Americans the hardest because they have less disposable income.
President Biden’s response to rising energy and gas prices was summarized last week. The President directed the FTC (Federal Trade Commission) to investigate oil and gas companies. The reason? We are not completely sure but we can only assume that Biden thinks that somehow, just in the last year, oil and gas companies decided to do something illegal.
Additionally, both the President himself and the head of his Council of Economic Advisers have said that they are talking with Saudi Arabia and other countries to try to get them to produce more oil in order to bring down prices because restrictions on oil production are part of the problem.
Actually, Mr. President the problem with prices is not oil companies trying to gouge consumers or with Arab countries. It is simply supply and demand.
You suggest that when you said you wanted Saudi Arabia to produce more, but it is a bit hypocritical since you have said you want the United States to produce less. Then you followed up your words with actions by cancelling the Keystone Pipeline that would being oil from our largest trading partner, Canada and by saying that you are considering shutting down a key pipeline already in operation (the so-called ‘Line 5’) in Wisconsin and Michigan (reports are that Biden is delaying a decision until after a Congressional vote on his spending bill, fearing a backlash that might cost him votes).
Biden’s attempts to deflect blame about gas and heating oil prices simply ignore the reality that it is his decisions that are driving up prices. He is either being disingenuous or lacks the simple understanding of Economics 101. In either case, we can unfortunately expect more of the same as the weather turns colder and the President refuses to look in the mirror.