The left never lets a crisis go to waste and the gas prices are no exception.
We are all aware of the soaring gas prices and it has nothing to do with Putin and the war with Ukraine.
Maybe it has to do with the fact that on Day 1 of the Biden administration he decided to shut down our pipeline, laying off thousands of workers and making us dependent on others for oil.
Oh, but these leftists can NEVER admit when they do something wrong at all.
They have to blame it on everything else besides their own actions.
That is the only way with the Democrats. Shift blame to everyone else.
So as the American people are struggling to decide if they should buy food for their families or fill up their gas tanks, Elizabeth Warren is chiming in with how to fix the crisis.
Warren, a Democratic senator from Massachusetts, has proposed the Price Gouging Prevention Act of 2022 as a plan to fight inflation.
However, if Warren gets her way, you can actually expect to see inflation get worse. Get ready for higher prices for gas, groceries, utilities, and more.
The problem with Warren’s basic idea of preventing price-gouging is that the current inflation crisis was not created by price-gouging and “corporate greed.” So she’s trying to fix a problem that is not a problem.
In her proposed bill, Warren wants to “allow the FTC and state attorneys general to enforce a new standard against sellers charging an unconscionably excessive price during periods of exceptional market shock.”
She also wants to specifically “target dominant companies that have exploited the pandemic to boost profits.”
“What has also happened is that now that we’re living in America where there’s a lot more concentration in certain industries, look at the oil industry, look at the meat industry, look at groceries generally. What’s happened is that these companies have said ‘you know, we’ll pass along costs, but while we’re at it and everyone’s talking about rising costs let’s just add an extra big dollop of cost increases to expand our profits,’” Warren said.
.@SenWarren on skyrocketing inflation: Don’t blame Washington, blame “Covid,” “the oil industry,” “the meat industry” pic.twitter.com/tPZjbowHsN
— Tom Elliott (@tomselliott) March 16, 2022
The cause of the current inflation comes largely from the government stimulus during the pandemic.
Of course, the pandemic was the first thing to naturally cause economic damage by shifting the supply and demand curves so that the demand for products was excessively high, but the supply was short due to labor shortages and supply-chain issues.
But the U.S. government decided to tamper with the economy and try to give it a shot in the arm with billion of dollars in stimulus.
“There would be a catch, though. As U.S. prices continue to rise by rates not seen in decades, it’s become clear that the stimulus came at a significant, unintended cost: inflation,” FiveThirtyEight reported.
In fact, the stimulus handed out to all Americans actually just seemed to make the supply-and-demand issue worse.
“The demand boost was very large in the U.S., and the stimulus checks were a large part of it,” Thomas Philippon, a professor of finance at New York University’s Stern School of Business, told FiveThirtyEight.
Warren now thinks that she can just turn the “inflation tap” off by trying to control prices from going too high.
But it’s not that simple.
“Inflation is not like a light switch. It ramps up and comes back down, maybe, if the right things are done,” economist Axel Merk said on an episode of Wealthion.
Warren’s idea that price-gouging is the problem that has to be fixed is simply inaccurate.
Instead, her “solution” will on make things worse for the limping economy, and that is exactly their plan.
