Biden clueless on how to resolve the surge in gasoline prices
It has been almost ten months since Joe Biden entered the White House, and the crises have been copious.
The most politically consequential among these crises is the surging prices of gasoline across the nation.
The national average for a gallon of gas is around $3.41, according to the American Automobile Association. That is a rise from $3.31 a mere month ago and a substantial rise from $2.12 just one year ago. It also marks a seven-year high.
In the state of California, the price of a gallon of gas is at an average of $4.68 per gallon, while it is $5.09 in L.A.
The price of consumer goods is inextricably connected to the price of gasoline, hence these surging gas prices have significantly contributed to inflation that is at its highest rate in three decades.
Data released by the Labor Department shows that consumer prices soared by 6.2% compared to the same period last year. This is the biggest one-year jump seen in the government's consumer price index since 1990.
The cost of essential food items such as meat, eggs, fish, and poultry has risen by 10.5 percent for the year ended September 2021, reported the Bureau of Labor Statistics.
All of this could be particularly punishing and distressing for regular consumers during the Thanksgiving season.
So how did Joe Biden react to all this?
He urged the Federal Trade Commission to investigate oil companies for "anti-competitive behavior." He wrote to Federal Trade Commission Chair Lina Khan. The letter was released to the press.
A key portion of the letter is as follows:
Usually, prices at the pump correspond to movements in the price of unfinished gasoline, which is the main ingredient of gas that people buy at petrol stations. But in the last month, the price of unfinished gasoline is down more than 5 percent while gas prices at the pump are up 3 percent.
I do not accept hard-working Americans paying more for gas because of anti-competitive or otherwise potentially illegal conduct. I, therefore, ask that the Commission further examine what is happening with oil and gas markets and that you bring all of the Commission's tools to bear if you uncover any wrongdoing.
It has to be remembered that under President Trump, the U.S. became the world's top oil producer for the first time in 35 years with zero imports of crude oil from Saudi Arabia. This obviously caused a drop in fuel prices that was a significant reason why the economy under President Trump was booming.
Experts have said there are several contributing factors to the surge in price.
Firstly, Biden blocked all oil and gas leasing on federal lands immediately after occupying the White House and placed restrictions on fracking, which was a significant source of oil extraction.
Secondly, Biden's revoked permission for the construction on the 1,200-mile Keystone XL Pipeline. The project had begun last year when President Donald Trump revived it after it was stalled almost indefinitely under President Obama. The Keystone pipeline would have moved up to 830,000 barrels or 35 million gallons of crude on a daily basis, connecting in Nebraska to other pipelines that feed oil refineries on the U.S. Gulf Coast.
Thirdly, when Biden's "green" energy policies raised prices for U.S. consumers, Biden should have empowered and encouraged U.S. energy companies to produce more oil by relaxing regulations. Instead, Biden almost begged OPEC and ten other oil-exporting nations such as Iran, Libya, Nigeria, Venezuela, and Russia to produce more oil.
Biden announces a request to oil producers to increase production, August 11, 2021.
YouTube screen grab.
Finally, President Trump had vehemently opposed the construction of the Nord Stream 2 pipeline between Russia and Germany. This was over concerns that it would give Russia greater economic and political leverage over Europe. The Trump administration had even imposed sanctions on the project in December 2019. A year later, Congress approved another series of tough sanctions on the firm contracted to construct the pipeline.
The Biden administration lifted those sanctions; this was seen by many as almost a gift from Biden to Putin. This is ironic, considering that the Democrats on the Hill and in the mainstream media claimed that President Trump was the one soft on Russia. This project was another punishment to American producers who once exported oil to E.U. nations.
If that weren't enough, Biden is said to be evaluating the cancelation of a 78-year-old Line 5 Michigan oil pipeline owing to a demand from Michigan's indigenous tribes. The pipeline is part of a network that moves crude oil and other petroleum products from western Canada, transporting about 540,000 barrels per day.
By asking the Federal Trade Commission to investigate oil companies, Biden is obviously attempting to shirk responsibility and shift the blame — a typical instinct of the left to demonize and blame private enterprises for their maladministration, inefficiency, and their impractical core ideas.
This demonstrates Biden's absolute lack of understanding of the fundamental principles of economics and the factors that contribute to oil prices.
What blackens the darkness and almost makes the prospects of any improvement an impossibility is the fact that Biden's energy advisers originate from the far left wing of the Democrats, who subscribe to the anti-capitalist and anti-free market Green New Deal.
These individuals are clueless about how oil production affects the economy. These are Washington "elites" who are unimpacted by the rise in gas prices. Worse, they do not care about how this affects regular citizens. This explains why energy secretary Jennifer Granholm Antoinette burst out cackling when asked to increase oil production to confront rising gas prices.
To sum it up, this is another display from the Biden administration of abject ignorance, followed by grave incompetence, topped with brazen arrogance.
The display of ineptitude and conceit are the sole demonstration of consistency from the blundering Biden administration.
Some have claimed that is not a defect, but a feature.
Voting wisely in November 2022 and 2024 is the only resolution to this unmitigated disaster.
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