Last post, we took the far left to task, so in the interest of being nonpartisan, we will today call out the right wing. Specifically, we will look at the insinuation that Joe Biden is responsible for rising gasoline prices. This is not a true partisan issue, as some left-wingers have blamed Republican presidents for pump pain, and there are plenty of conservatives who understand that the White House doesn’t set gas prices.
But those that do think that are the focus of today’s post. Expect for some negligible indirect influence, the commander in chief has nothing to do with whether one shells out two dollars or five for their gallon of mid-octane.
According to the U.S. Energy Information Administration, the key factors in the price gasoline consumers pay are: Taxes; crude oil cost; refining costs and profits; and distribution and marketing costs. The executive branch position on civil liberties, infrastructure, national defense, Brussels sprouts appreciation proclamations, or everything else are nonfactors.
Writing for the New York Times, Richard Thaler explained that the U.S. consumes 20 percent of the world’s oil while owning just two percent of the reserves. That means the Middle East has us by the collective balls in perpetuity.
Thaler wrote that while this leaves the U.S. little say in the price of oil, the country could help itself by reducing consumption, using oil more efficiently, and prioritizing alternative fuel sources. But this would be tedious even if everyone was on board with the ideas. And that is not the case, as evidenced by the ostentatious souped-up trucks which double as moving platforms for oversized U.S. and Confederate flags (pick a side, dude).
And even those Americans not in the redneck subset love their automobiles. Further, alternative energy has seen only lukewarm results. Therefore, Thaler opines a better approach would be to gradually raise gasoline taxes to what they are in Western Europe. Because those taxes are high, fuel-efficient automobiles are far more common in Germany than in Georgia. The high taxes could be more than offset by the drop in demand.
So the one indirect impact a president could have would be to suggest charting this corrective course. But that would be political suicide in the United States. So they do nothing and we are left with the bizarre, indefensible spectacle of praising or condemning the executive branch for something beyond its control. We might as well blame them for my leaky faucet.
Thaler wrote his piece in 2012 but nothing has changed since then. For a specific look at today’s Biden Blame, we consider the writings of Jonathan Oher on thejostle.com. He highlights some social medial posts which insist the president is responsible for the rising prices and others which portend an even more frightening fuel future.
On Biden’s inauguration day, the average price for a gallon of gasoline in the U.S. was $2.37. The posts that Oher cited had prices being 30 percent lower than that, but beyond the factual error is the mistaken insinuation as to who is to blame if the price becomes 4, 5, or even 6 dollars per gallon. Tellingly, none of the posters seem ready to heap praise on the president if the prices plummet to $1.50 a year from now.
The posts also play loose with the facts, showing prices a few days before and after inauguration day, but posting them from different parts of the country. Different locales will always play different prices because of state taxes and distribution costs. Using this disparity to make the point would be like comparing the January temperatures in Minneapolis to those in Miami and blaming the president for global warming.
But, again, the key point here is not the actual price or the fluctuation but the party responsible.
The rise seen over the past two months is primarily due to a correction of gas prices that dipped during the pandemic, which created an artificial drop in demand. With the country somewhat opening up, full tanks are needed for these trips to the now-open malls, sports arenas, and restaurants.
Beyond fuel usage, crude oil cost plays a role, as the slick substance is likewise recovering from the pandemic. The cost went down more than 10 percent from January 2020 to January 2021. As that price corrects, gasoline prices will rise, as will the number of misinformed memes about who is responsible.