The national gas price average today stands at $3.61, marking a significant 51% increase since President Joe Biden took office. This surge in gas prices has left many voters feeling the pinch at the pump, with 84% of respondents in a recent poll expressing concerns about the rising cost of gas, along with other essential expenses such as groceries, healthcare, and housing.
Former White House economic advisor and FreedomWorks chief economist, Stephen Moore, highlighted the impact of the escalating gas prices on the economy. Moore pointed out that prior to Biden's presidency, gas prices ranged between $2 and $2.50 per gallon, contrasting sharply with the current national average of $3.61 per gallon. In states like California, gas prices have soared to as high as $6 per gallon, exacerbating the financial burden on consumers.
Moore attributed the surge in gas prices to Biden's decision to halt the Keystone XL pipeline and restrict domestic oil and gas production. He argued that increasing oil production by two to three million barrels per day could potentially reduce gas prices by up to a dollar per gallon, but the current administration has not pursued this course of action.
Furthermore, the rise in gas prices has had a ripple effect on other sectors, such as the automotive industry. Skyrocketing car prices, coupled with the scarcity of gas-powered vehicles, have made it challenging for consumers to afford new vehicles. As a result, the average lifespan of a family car has increased to 12.6 years, reflecting the financial strain on households.
Moore emphasized that the escalating costs of essential goods and services, including gas, groceries, rent, and mortgages, have outpaced the official inflation rate. He contended that while official inflation figures suggest a 20% increase, the actual rise in prices for essential items is closer to 25-30%, outstripping the modest growth in household incomes.
The financial strain caused by rising gas prices has also impacted Americans' summer vacation plans, with nearly three-fourths of respondents indicating that gas prices have influenced their travel decisions. A significant portion of individuals cited financial constraints as the primary reason for canceling or scaling back their vacation plans.
In response to the crisis, President Biden has proposed tapping into the strategic petroleum reserve to alleviate gas prices. However, critics like Moore argue that a more sustainable solution lies in boosting domestic oil production to achieve energy independence and stabilize gas prices.
