Why Gasoline Hurts Republicans | Business

Until that day, Republicans and the conservative media had and enjoyed talking about the price of gasoline. Do you remember what cheap gas was like under Trump? It became a kind of answer to everything. Is there now compelling evidence that the former president conspired in a violent attempt to bring down the 2020 election? “Real America doesn’t care about the Jan. 6 commission. Gasoline costs more than $5 a gallon [unos 3,785 litros]Representative Jim Jordan said.

But the price is now dropping. The gallon price drops by more than 50 cents at the pump; Wholesale prices, whose changes are usually later reflected in retail prices, fell further, which is an indication that prices will continue to fall for at least the next few weeks. And there is a palpable sense of panic in Fox News, which has had to confine itself to grumbling about how the White House is doing its “lap of honor.”

Indeed, from what I can see, officials in the Biden administration are extraordinarily constrained in highlighting good news (which is likely the result of the global economic slowdown). But the bigger point is that focusing on the price of gas is stupid on the part of Republican politicians. And if that came back to haunt them, it would just be a matter of poetic justice.

Why is it stupid to focus on the price of gasoline? Let me tell you. First, while presidential politics can have serious consequences for many things, the cost of filling your gas tank is not one of them. En su mayor parte, el precio de la gasolina refleja el precio del crudo, y los precios del crudo se establecen en los mercados mundiales, siendo esta una de las razones por las que la inflación se ha disparado en todo el so en mundo, United State. Consumer spending in the early months of the Biden administration may have contributed to inflation in the United States, but it has nothing to do with the price of gasoline. Second, while gasoline was already cheap in 2020, it was cheap for a very bad reason: global demand for oil has fallen as the global economy has faltered under the impact of the COVID-19 pandemic. Third, even before the pandemic, the price of gasoline was unaffordably low.

Little known fact: Pump prices fell during President Barack Obama’s second term. Newspaper reports at the time marveled at Obama’s reluctance to register. what happened? Basically, the rise cracking, which has increased oil production in the United States to the point that it has driven prices lower around the world. However, it turned out that this production boom did not make financial sense. Energy companies have borrowed huge sums to invest in new drilling, but they haven’t generated enough returns to justify the cost. industry cracking It lost hundreds of billions even before the epidemic broke out.

So high gas prices weren’t President Joe Biden’s fault, and given the demise of the forces that kept gas cheap, it’s hard to think of any policy less than causing a global depression that would drive prices down. Up to two dollars per gallon, or even three dollars per gallon. In any case, the Republicans also don’t make any real policy proposals. However, the Republican Party opted for a low blow to try to get the midterm elections to focus primarily on the price of gasoline. And that focus on gasoline is giving the party a stomach ache, with gas prices dropping.

All things considered, it’s hard to spend month after month insisting that Biden deserves all the blame for high gas prices, and then denying him credit for lowering them. The usual suspects, of course, are hard at work on this, but it probably won’t work for them. Some analysts on the right are trying to shift to a longer view, noting that the price of gasoline is still much higher than it was in 2020. That’s right. But so much of his message hinged on his voters’ amnesia, on his supporters who don’t remember what was really happening in 2020, and I have doubts about the effectiveness of this approach.

More broadly, many Wall Street analysts expect a sharp drop in inflation in the coming months. If analysts and markets are correct, we are likely heading into a period where inflation headlines are better than the actual situation; It is not clear if core inflation has fallen much, if at all. But this is not the argument of Republicans, who have done their best to simplify the debate about inflation, are in a position to do so.

This has clear implications for the midterm elections. Republicans are counting on inflation to give them a major victory, although no explanation is offered as to what they will do to fix the situation. But if you look at the public vote, which likely won’t yet reflect the drop in gas prices, rather than Biden’s approval rating, the midterms look like they’re going to be surprisingly competitive. Perhaps real Americans are interested in violent attacks on democracy, such as the reversal of the Roe v. Wade (who protected abortion rights at the federal level) and other things like that.

If the good news about inflation continues to emerge, the November elections could be very different from what everyone expected.

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