Will Inflation Be Biden’s Achilles Heel?
It’s often what presidents say about the economy rather than what they do that matters more.
During Trump's tenure in the White House, gas prices flirted with the $3-a-gallon mark twice, in October 2018 and May 2019, reaching a peak of $2.95. But few people in the Republican Party said anything about that then.
Gas prices have also been adversely affected by a shortage of inventories, which were first depleted when producers cut back following the pandemic and then further exacerbated by a string of storms in the summer that caused major damage to supplies coming from the Gulf Coast. Moreover, it is the world's oil producers, led by Saudi Arabia, the Gulf states and Russia, that largely determine the price of oil and, by default, gasoline.
But that is little comfort to many folks, especially those who rely heavily on cars to get around.
"Every penny a gallon in the gasoline price amounts to a direct $1.5 billion annualized tax on the American consumer," says David Kotok, chairman and chief investment officer at Cumberland Advisors. "That is a transfer taking place every single day. Even if you drive an EV (electric vehicle), the cost of the electricity to power it is rising. If you're in New York and take the subway, you may not see the consumer cost impact. But if you're in South Dakota and drive a lot, you certainly will see it."
Read the full article here: https://www.usnews.com/news/the-report/articles/2021-11-12/is-joe-biden-getting-the-message-on-inflation
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