The first thing taught to any economics student is the relationship between supply and demand.
When there’s less of a product around, that product’s value increases, therefore making it cost more.
It’s a very simple rule to understand and yet, it appears that President Joe Biden doesn’t seem to grasp it. Perhaps he never took Econ 101.
A video of Biden has been circulating recently on social media showing his lack of knowledge regarding the forces of supply and demand.
In the video — which is a clip from a March 2020 Democratic presidential primary debate between Biden and Sen. Bernie Sanders — Biden promises to drastically cut back domestic oil production.
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In order to do so, Biden promised to attack the fossil fuel industry through the removal of numerous subsidies and permits.
Joe Biden in 2020: “No more subsidies for the fossil fuel industry. No more drilling including offshore. No ability for the oil industry to continue to drill period. It ends.” pic.twitter.com/90MVJevPmv
— Dan O’Donnell (@DanODonnellShow) March 8, 2022
“No more subsidies for the fossil fuel industry. No more drilling on federal lands. No more drilling, including offshore. No ability for the oil industry to continue to drill,” Biden said during the debate.
Should Biden ramp up domestic oil production?
“Period. It ends.”
And, predictably, with less fossil fuel production came higher gas prices.
On Thursday, the national average price for gas passed $5 a gallon, shattering previous record prices according to fuel savings company Gasbuddy.
“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,” Gasbuddy lead petroleum analyst Patrick De Haan said.
Of course, there are many factors driving up gas prices that Biden as a candidate couldn’t account for — the Russia/Ukraine crisis and the impact of the COVID-19 pandemic, for example.
However, Biden’s efforts to tamp down domestic oil production have had a massive impact as well. His administration’s willingness to print off incredible amounts of money is creating an inflationary crisis that hasn’t helped either.
If Biden truly wanted to correct these mistakes, he’d be opening up the drilling floodgates.
But, unfortunately, Biden cares more about appeasing climate change alarmists than saving the livelihoods of the American people.
