Is Bidens gas tax proposal going to further fuel inflation? From what i remember from basic economics, inflation is caused by to many $ chasing to few goods.
Then you will remember the concept of elasticity and inelasticty of demand.
To be honest, i doubt anyone filling up will notice. It would have been more effective to have set policy that would create a environment to allow oil and gas to flourish when he first took office, 2 years ago, but that’s not what Joe wanted.
Exactly! Flourishing oil companies is the answer since they aren’t flourishing enough.
It’s at best a feel good policy. $.18x15 gallons to fill up = $2.70 x 2 fill ups per month x 3 months = $16.20 help for me IF it is fully passed on at the pump. That savings will be eaten up in a day or 2 with inflation still running rampant. Feel good political talking point- doesn’t address real root issues to improve people’s financial position like getting inflation down or significant sustained fuel cost drops ASAP.
Oil and gas is the only industry that has flourished in the last year (well real estate too). They are flourishing because of high oil futures that have created bigger profits for them. The more those companies drill, it lowers the price of oil while increasing their costs and lowering their profits. So I guess you should thank the president if you think he has the ability to control gas prices, because you got your wish about oil and gas flourishing.
I’ll let the O&G guys chime in, but I would guess their companies aren’t happy about the big drop today. You will see prices at the pump drop because of it.
Oh and I would be against the tax suspension. But not because of jfournet’s lack of understanding of inflation. It just wont change much and the full amount wont reach the customer.
Oh those evil oil companies, that fuel your car ,plane, house
They don’t do it for free, do they?
Solar and wind are sources too.
Yeah whatever. So whats causing it financial genius?
Your car is solar powered? 80% of us electricity its from fossil fuels.
No financial genius, but did pay attention in my economics and international business classes at UH. If you think lowering or suspending a tax on a single commodity can cause inflation, no real discussion can happen.
What if the retailer does not cut his pump price by $.18?
Nothing makes him have to do that.
The gas station next to him would get all the business then, the free market would work the price lower unless somehow every single gas station agreed with each other not to lower the price (which would be illegal). Maybe not the full 18 cents but most of it I would guess. But I said I was against the tax suspension so not sure why you are replying to me.
18 cents a gallon ……So a bit less than $4 for a complete fill up…… say I do that twice a month…. How is that $8 a month going to help me exactly?
It doesn’t help, neither does student loan canceling student loans, it just puts more $ out there to chase goods further driving up inflation
So no answer, just being political …
How can you completely ignore my question to you in another thread and then say my reply wasn’t good enough here? If you are looking for an explanation on inflation in one line or that can be chanted at rallies, you wont find any good ones.
“it just puts more $ out there to chase goods further driving up inflation”
Are you saying tax cuts lead to inflation? Be careful, that may go against what you liked about a certain guy. Need to stick to 100% of the blame going on the current guy.