I filled my gas tank this morning at the small town station I use when spending time at our lake place. When I selected regular, I noticed this very professional looking decal with a picture of President Biden with one arm pointing at the price and the caption – “I did that”. Another decal was positioned next to the total cost of my fill. The price per gallon was $3.19 and it was a dime higher than I remember from my last visit. I should have taken a picture before I peeled the decals off. I checked the other pumps to get a photo, but it was only the pump on the end out of the visual field of the folks working at the station that had been selected for comment.
I know little about macroeconomics, but there are some things I believe just because these arguments seem logical. First, I don’t think the government officials pocket any money when citizen costs increase. They might benefit from the gifts of lobbyists, but they don’t get a cut when the cost of gas increases. I also don’t think the government burns money. It has to go somewhere.
I happen to be reading my local paper – the Minneapolis Star Tribune and I found this story about the increased oil revenue going to the North Dakota oil fields. This was the case even though less oil was being extracted. The value of a barrel oil has gone up, the oil companies have benefited, and the state has received more tax revenue as a consequence. Of course, the increased cost at the pump has also benefited other countries and regions of this country. My point – money goes somewhere and benefits someone. So rather than blaming Biden or Pelosi, you could more accurately blame the people of North Dakota for benefitting from the increase in what you pay.
My take on macroeconomics is that we should be more worried about income inequities. The world has faced great challenges as the result of the COVID pandemic. In this time, folks are out of work possibly because they cannot find child care or their employer needed to cut back. Price increases are tough for these folks. At the same time, stock market is at a record level and the ultra-rich and even the rest of us with money in the market are getting richer. So, when you try to blame politicians consider where the money you feel you are losing goes. Get upset over why it is not going to the folks who need really need it.