If you were asked to describe Biden and his policies and a few words, while there are certainly some four-letter words you’d like to say, “ineffective” and “stupid” might be. are words that will appear somewhere in your list .
Those are exactly the words Larry Summers, an economist who worked for the Obama Administration, used to describe the “gas tax holiday” being floated in DC as a way to alleviate the price problem. Gas is slowly becoming a crisis.
Essentially, US crude oil prices broke through $90 per barrel and held at that punitive level. Between Biden’s warmth with Russia, which is not a stimulant for international trade and energy production, and his anti-energy policies, some analysts are claiming that prices are not there is only the possibility of sustaining there but a breach of the $100 mark and possibly even $120 is possible.
What that means for the average American consumer is the price of gas at $4 a gallon, if not higher. While Californians and others stuck in blue trash cans may be used to those punitive prices, the average American is not.
So Democrats in Congress and officials inside the Biden White House are reportedly considering a temporary “federal gas tax break” to ease some of the price pressure and hide price increases until crude oil prices fall.
However, the federal gas tax is only about 18 cents a gallon, so there’s a limited amount of pain they can hide when prices per gallon skyrocket. For example, the current average price is, according to ZeroHedge, somewhere in the vicinity of $3.48. If price-per-gallon hits $4, temporarily canceling the 18-cent gas tax won’t even cover half of that increase.
However, as Democrats worry that the cost increase could hurt their chances of re-election, purple state Democrats are reportedly planning to promote party members. Their companion democracy ignores the shrill screams of climate change frenzy and passes tax cuts, at least for now. According to ZeroHedge:
The potential risks prompted Sens Mark Kelly of Arizona and Maggie Hassan of New Hampshire, two Democratic lawmakers facing stiff re-election battles, to announce a bill last week that would tax pause until January next year. Their supporters include Sens. Debbie Stabenow (D-Mich.), Catherine Cortez Masto (D-Nev.), Raphael G. Warnock (D-Ga.) and Jacky Rosen (D-Nev.), The same people face contests A difficult midterm turns into November, when the majority party in the House and Senate could be at risk.
That wasn’t the best plan, though, at least according to Larry Summers, the Harvard economist who correctly predicted a rebound in inflation when all the machines said it was temporary. According to ZeroHedge, he considers the plan foolish:
But Larry Summers, the former treasury secretary and top economist for the White House during the previous Democratic administration, called the idea of a gas tax holiday “short-sighted, inefficient, stupid, and ostentatious. show”. Summers, a senior critic of the Biden administration on inflation, said the impact of the policy was unclear because it could boost demand in other areas of the economy.
Perhaps, instead of cutting a relatively small tax, Biden should just cut the sword, makeover with Putin, and encourage American energy production. That sounds much more efficient.
https://smartzune.com/wh-weighing-ineffective-goofy-policy-to-deal-with-gas-price-surge/ When Weighed the “Ineffective, Stupid” Policy to Deal with Gasoline Price Increases