The Democrats know they are in for a rough midterm election season this fall looking at the state of the economy and the rock bottom approval ratings recently. Gas is nearing $5 a gallon nationwide and is forecasted to continue to rise throughout the summer.
Biden and the Libs keep trying the shift the blame for the record high inflation, where recently we have heard them falsely attribute the rise in prices solely to “Putin’s Price Hike”, when it mostly has been a combination of the Federal Reserve’s Monetary Policy, unnecessary fiscal spending on behalf of the government, and Democratic policies enacted.
Biden, while barely coherent as usual, gave a recent statement where he attacked gas stations and claimed that they just simply need to lower prices. He stated, “My message to the companies running gas stations and setting prices at the pump is simple: this is a time of war and global peril. Bring down the price you are charging at the pump to reflect the cost you’re paying for the product. And do it now.”
Biden clearly doesn’t understand that gas stations are one of the most unprofitable businesses in the country, earning a mere 2 cents per gallon from gas they sell. They are simply reacting to market forces when they dictate their prices, not price gouging.
Amazon CEO, Jeff Bezos, who has been a critic of Biden’s policies recently, correctly stated that his comments are, “straight ahead misdirection or a deep misunderstanding of basic market dynamics.”
Similarly, the US Oil & Gas Association, suggested that the White House, “register for Econ 101 for the fall semester.”
Democrats can continue to lie about who is to blame for gas prices and overall inflation, but they cannot escape the effects of their disastrous energy policies. They have undone Trump’s deregulation of American fossil fuels which gave us record low gas prices and energy independence.
Joe Biden immediately canceled the Keystone Pipeline via executive order when he first took office. This pipeline delivered almost 900,00 barrels of oil per day. Biden also suspended all drilling leases on public land and prohibited offshore drilling in Alaska and the Gulf of Mexico. In addition, Biden has strengthened the EPA’s regulatory power over businesses to hinder the fossil fuel industry’s investment in new projects because they are a “threat to climate change”.
Joe Biden’s comments about fossil fuels during his 2020 Presidential Primary campaigns perfectly illustrate these policy actions. He made statements in 2020 stating that he would “transition” the US away from fossil fuels and that oil companies “would not be able to start new drilling”.
These actions send a clear message to the fossil fuel industry. If one pipeline is canceled, more will be canceled. Leases have been suspended, so there is no use in new drilling. This prevents the oil industry from expanding production because of the regulatory burden rendering their investment in new projects unprofitable. On top of that, banks will view lending to oil companies riskier, making it more difficult to obtain loans to invest in projects. Likewise, shareholders of publicly traded oil companies now require a higher risk premium due to the regulatory risk to profit margins, which diverts capital toward dividends instead of investment in expanding oil production.
Joe Biden and Democrats are bipolar when it comes to the issue of gas prices. If they are pandering to Green New Deal radicals, they claim this it’s instrumental in the transition to a “renewable future”, except they will destroy the savings of the middle class to do so. If they are speaking to hard-working middle-class Americans, they will blame everyone but themselves for creating this mess.