For many months, Democrats have tried to blame everyone and everything except Biden for inflation. Over the course of one year, we have gone from “inflation won’t be permanent” to “inflation can be temporary,” to “inflation is good for” to “inflation began under Trump” to “it’s Putin’s price rise.” So, Biden and the Democrats now accuse oil companies of price gouging.
Biden tweeted in March that “Oil and Gas companies shouldn’t increase their profits at the cost of hardworking Americans.”
Pelosi, House Speaker, stated earlier this month that while families struggle to pay higher fuel prices, oil and gas companies are making record profits.
This may seem like a better strategy than blaming Putin. However, Big Oil has been a favourite bogeyman of leftists for decades. The Federal Reserve Bank of Dallas has debunked this myth in spectacular fashion.
Garrett Golding, a senior economist at the Dallas Fed, and Lutz Kilian, a blogger this week, explained that price gouging is not one of the factors responsible for record-breaking gas prices in the United States. They also point out that the prices of gasoline are not set by oil drillers and are influenced by rent and credit card fees.
Moreover, only 17% of crude oil produced in the United States is controlled by Big Oil, while 83% of U.S. crude oils are produced by independent oil and natural gas companies.