Since it is common knowledge that a decrease in supply drives up demand and consequently prices, it should come as no surprise that when prices rise, supply should be shut off.
In addition, everyone is aware that expensive things created with oil are accompanied by high gasoline prices.
Those high gas costs at the pump impact not only the daily commute of the average American, but also the transportation of people and things throughout the country.
Gasbuddy reports that on Thursday, the national average price of gasoline surpassed $5 per gallon, surpassing prior records.
Patrick De Haan, the lead petroleum analyst at GasBuddy, stated, “It’s been one kink after another this year, and worst of all, demand doesn’t seem to be responding to the surge in gas prices, meaning there is a high probability that prices could go even higher in the weeks ahead,”
As transportation costs continue to rise, Americans are witnessing price increases not only at the petrol pump but also at the grocery store and throughout the retail sector.
The eagerness of the Biden administration to generate enormous sums of money is generating an inflationary crisis, which has not helped matters.
Other evident difficulties include the distribution of $1.9 million under the American Rescue Plan, which did not stimulate the economy.
According to Marc Goldwein of the Committee for a Responsible Federal Budget, an organization that advocates for lower deficits, “The American Rescue Plan was significantly greater than the economy could bear.”
Sadly, though, Biden seems more concerned with placating climate change alarmists and pretending to care about the environment than with protecting the livelihoods of the American people.
Taking into account additional reasons driving up petrol costs that Biden could not account for as a candidate, such as the Russia/Ukraine crisis and the impact of the COVID-19 epidemic, the fundamental economic concept cannot be disregarded.
More on this story via The Republic Brief:
It does not take a professor of economics to see that Biden’s effort in shutting down domestic oil production has had a massive negative impact instead of correcting the situation.
In April the Independent reported that The Biden Administration reversed Trump’s rule and shut down almost half of an Alaskan site.
Closing 48% of the federally-owned national Petroleum Reserve, planned by Trump to be a site for more future drilling, meant drilling expansion was at a standstill.
In addition to jobs lost, other concerns were stated at the time. Read more…