Within the last few weeks several subjects have been in the news driving people to the point of insanity. Inflation hitting an all-time high (8.26%) in 40 years along with 6,000 illegals crossing our southern border every day has taken a temporary back seat to the shortage of baby formulas and the subject of abortion.
I would never say one problem is more important than another, but many of these issues affect the majority of the population.
Gas prices are currently at the highest they have been in years. The reasons for this are many, but one of the main culprits is a shortage in refining capacity. This has led to a greater demand for gasoline and diesel fuel, leading to higher prices.
In December 2020, the average retail price of gasoline in the U.S. was $2.20 per gallon. When Biden took office in January 2021, immediately declared war on the fossil fuel industry — as he said he would. He shut down construction on the infamous Keystone pipeline during his first week.
His administration took away drilling permits and leases on federal land, denied permits for other pipelines, discouraged banks from lending to the petroleum industry, and held up permits for new or expanded LNG terminals to make exporting LNG more difficult and expensive, among other things.
By contrast, the Trump administration had a series of pro-oil and gas production policies to make the U.S. self-sufficient and even an energy exporter. The numbers show the Trump administration met its goals and then some.
The predictable result of Biden’s reversal was a large decline in oil and gas production and increased prices (some of this effect was also due to the pandemic). Retail gasoline prices rose each month, and by December 2021, a year after Biden took office, the average price had risen to $3.31 per gallon — up $1.11 in one year.
The U.S. went from being self-sufficient in gas and oil and from being a major exporter to net importer — including oil from Russia. From the time of the buildup to and the actual Russian war on Ukraine, gasoline prices have risen an additional 95 cents per gallon (as of March 19) to an average retail price of $4.26 per gallon.
Biden and his administration blames Mr. Putin for this price rise, yet most of it started before the war.
The average price of gas in Arizona, as of May 10, is $4.66 a gallon, up 10 cents from last week and $1.58 from the same period in 2021. Today in Phoenix prices are ranging from $4.69 to $5.49 per regular gallon of gas.
The regular gas prices in California are hovering just under $7 per gallon, with the expectations of prices rising around the July 4th weekend.
These prices come under the subject of inflation which is the reason 64% or 2 out of every 3 Americas are living paycheck to paycheck. Even as wage growth is trending higher — around five percent over last year — the eight-plus percent consumer inflation means Americans’ real wages are actually three percent lower than twelve months ago.
The rise in food prices is keeping up with the gas prices. The average grocery bill in the US is now $366 per person per month which is a 9% increase from April 2021 to April 2022.
Transportation and food are 2 of the main items we can’t live without. Walking to our destination is a choice but not easily done in the Arizona heat, especially if you are not conditioned for physical exercise. Growing a garden can solve some of your food costs if you are so incline to be a vegetarian and a farmer, and of course, have the space and the money to start a vegetable patch.
The present administration and fake news blame Putin and Ukraine for many of these disasters. Typically, no one takes responsibility and quickly fabricates lies that the American people are expected to believe.
I welcome your opinion and, as usual, will not censure anything you have to say.