While we know that Biden’s proposed gas tax holiday is dead on arrival, and thus just another waste of time by the administration whose hot air emissions have singlehandedly raised global temperature by at least one degree, we would be remiss if we didn’t point out just how stupid this latest suggestion truly was.
According to JPMorgan analyst, the Biden’s admin’s intervention to artificially lower gasoline prices would remove some of the incentive to curb consumption and would in fact push pump prices higher as artificially lower prices would encourage people to drive more.
Instead, long-term price relief can only be achieved when insufficient refining capacity and other supply-side issues are addressed or when demand declines significantly (i.e., Biden pushes the US economy into a recession). Indeed, as we discussed last night, proposed solutions under discussion include cutting fuel taxes, changing blending requirements, and capping fuel exports.
Before we get into the details,