By Douglas V. Gibbs
James Carville once said, “It’s the economy, stupid.” The Democrats have decided that in this election cycle they would put forth an argument that not only do they hate Trump, but there is an affordability crisis. And, to be honest, a number of things are costing more than we would prefer, and when that happens most folks throw context out the window and blame whoever is resting their bottom on the seat of power – which, currently, is President Donald J. Trump.
Gas prices are too high, we are told, and it is because of tariffs and a war in Iran and whatever else they can pile on – hoping you’ll forget what they’ve done, what they’ve said, and what they’ve desired in the past.
Context is everything, I constantly tell folks. And if we examine the rise and fall of gas prices over recent history, one of the things that jumps out at us is that the average price of gas during Trump’s first term was about 48 cents per gallon less than under President Barack Obama. During Trump’s second term, average gas prices have been about 9 cents per gallon less than during the Biden administration.
Those are the numbers we paid at the pump, without taking inflation into account. Due to inflation, a 2010 dollar was worth more than a 2020 dollar, and the 2020 dollar was worth more than a dollar today. If we adjust the prices per gallon due to inflation, it gets even more interesting. When adjusted based on inflation, Trump’s first term gas prices were over a dollar a gallon cheaper than under Obama, and the gap becomes 46 cents per gallon cheaper during Trump’s second term when compared to the Biden administration.
Could the prices come down even more? Sure. Many factors can play into the whole calculation, from supply and demand to the cost of doing business. The Democrats claim that the military operations against Iran are to blame for high gas prices, and that the “war” has been detrimental to the United States in many ways.
Okay, let’s examine that.
Destroying Iran’s nuclear program benefits the U.S. because now the U.S. and our allies are no longer concerned about a substantial military threat. The leadership of that country has openly called for the destruction of the U.S., Israel, and anyone else they believe to be allies of the Great Satan and the Little Satan. The move also reduced the flow of fuel to our enemies, in particular, China. The blockage during this war has indeed starved the market of some of its supply, and has played a part in the price of gas. But, that flow of fuel is now beginning to move into the larger pool of international trade. More supply in the supply-and-demand-equation is a good thing, and that supply is currently increasing as the Strait of Hormuz opens up. More oil is also entering the picture out of Venezuela. And, thanks to an increase in domestic production, the global supply of oil is also on the rise. The movement of the price needle will not be immediate, but the increase of supply across the globe will result in lower prices – so when it comes to the price of gas (which is already lower than it was under Democratic leadership), the numbers will be going downward soon. We simply need to be patient.
As for the massive prices in places like California, that’s mostly the doing of Democratic Party policies – from special blends of gas, taxation, to the reality that their policies have been chasing refineries out of their states (plural because Oregon and Washington suffers from the same affliction).
Yes, over the last eight months, gas prices have risen compared to what they were at the start of Trump’s presidency. That is a reality of economics – prices and production and consumerism are all in constant motion. But, let’s also not forget other factors that are in motion. For example, more Americans are working, so demand is on the rise. Wages are rising as well. U.S. household annual incomes, inflation-adjusted, have increased more than five times the average annual increase during the Biden administration – so while for the moment gas seems to be higher than we prefer, generally overall, we also can afford the temporary and reasonable rise.
As incomes rise, the poverty rate has dropped under President Trump to the lowest it’s ever been (at least since the U.S. Census Bureau has been compiling the data), and is currently at 10.2%. The economy is growing, consumerism is increasing, wages and production are on the rise (largely as a result of the tariffs the Democrats keep crying about), and those in poverty are being lifted out of that condition.
Yes, we would all like to see the gas prices come down a little – don’t we always? But when compared to past numbers, and the growth of the economy, are we really in an affordability crisis when it comes to the price of gas or the basic cost of goods?
Meanwhile, the cost of gas-powered cars may be on the verge of dropping. President Trump approved new fuel economy standards. The new standards reduces the heavy regulations against gas engines, and terminates the EPA’s electric vehicle mandate. President Trump wrote about it: “These new Standards will take the waste out of building cars in America. That means LOWER PRICES, saving families thousands on a new, beautiful, and safe car. Far better than the Environmental Monsters that we were building heretofore. Every Manufacturer, from General Motors to Ford to Stellantis, has called me wanting to build here, and now they can!”
Diesel fuel is definitely much higher than it should be, and it negatively affects the cost of doing business. Understanding that supply and demand is a big part of the equation, President Trump made a deal with Russia to supply millions of tons of diesel fuel to the American and global market. Trump tied the arrangement to U.S. leverage in the Persian Gulf. He wrote, “Between our TOTAL CONTROL of the Strait of Hormuz, and this great announcement on Russian Energy, Diesel Prices for Americans and, indeed, the World, will be COMING DOWN, IN RECORD NUMBERS, AND FAST!”
The lower diesel prices ought to assist in reducing costs for farmers, ranchers, and other industries across the country, which will then influence the general price of most products.
When it comes to the so-called affordability crisis we must also remember that there is what we can see, what we don’t see, the context as I’ve provided, and then things that many of us don’t seem to notice or understand. According to Federal Reserve Governor Christopher Waller we are witnessing higher yields on U.S. bonds, and he says it’s a good thing. It reflects higher growth, and Waller challenged the view held by some analysts that the Iran military operations and tariff-related inflation fears were pushing up yields. “Inflation expectations are well anchored, so all of the build-up is not coming from an inflation premium,” Waller said. “That’s not where it’s coming from. So it is a factor of real growth. If you have real growth and real productivity and these investments are going to pay off, you are willing to pay more in terms of your interest costs.” Competition with AI for investment is also driving up yields, Waller said.
As for tariffs, Representative Mike Collins (GA-R) argues that tariffs make the markets more fair. I’ve argued that it also ends a global redistribution of wealth scheme against the United States. One of the results, over time, will be an increase of domestic production and manufacturing. In short, bringing jobs back to America. Whether or not tariffs are contributing to higher prices, along with the debate over the price of fuel, it’s all temporary and will level off if we just allow the processes to complete.
The affordability crisis claim by the Democrats is a false one, but they believe they can lie like they do without us considering the context, history, or how things work economically. They want you to react to what they say as we struggle to make sense out of what we see. They don’t expect you to critically think, use your discernment and common sense, and to realize that their deception is nothing more than an attempt to fool you into voting for them so that they can seek power and make any affordability worse. They hope you won’t think beyond what is on the surface based on their claims so that they can increase the madness, not because they have any plans, strategies, or hopes to end what they claim is an affordability crisis.
— Political Pistachio Conservative News and Commentary
