When it comes to the expensive gas prices seen across the United States, Democrats don’t want Americans to put the blame on Joe Biden, inflation, or the spending from the federal government.
Instead, the left has chosen to blame virtually everything else. They’ve said high gas prices are the fault of the war between Ukraine and Russia. Nevertheless, this war began well after gas prices were already starting to rise in America.
Democrats, nowadays, are running with the claim that high gas prices are just about vicious corporate greed from oil and gas companies. However, a brand new release from economists at the Dallas-based Federal Reserve proves that these claims are also false.
The Truth About High Gas Prices
Top Federal Reserve economists have completely put to bed the narrative that oil and gas companies are just hiking prices out of greed.
These economists noted that gas prices are set based upon a combination of operating expenses, taxes from state and federal governments, along with the anticipated costs of overhead.
When these price metrics rise, so do the overall costs of gas. This is why California took so much heat for recently increasing taxes on oil and gas companies.
The Dallas-based Federal Reserve economists pointed out another critical factor as well. Nationwide, oil companies only own 1% of American gas stations. Therefore, the left-wing argument that these companies are just increasing prices to better their bottom line is false.
Domestic Energy Production Matters
This latest news from economists shines a light on why domestic energy production has such a strong impact on gas prices. America has more than enough resources to produce oil and gas here in the states.
It would not only cost less money, but it would also create jobs. With energy produced in the United States, gas station operators would be in the position to lower their costs, thus providing relief to Americans.
This is exactly what happened during the Trump administration. However, when Biden shut down pipelines and interfered with oil and gas leases, he literally forced Americans to pay the prices for it.
To this day, the White House is still standing against oil and gas leases. Sales in both the Gulf of Mexico and Alaska were just recently shut down.
On top of this, the president is refusing to revive the Keystone XL pipeline. As long as the Biden administration proceeds with its current anti-energy policies, Americans will pay for it at the gas pumps.