I received an economics degree from a top-20 business college and an MBA. After reading the letter from a writer blaming President Biden for high gas prices, inflation, and product shortages, it would appear what I was taught was false and I wasted six years of my life.
I learned that gas prices are primarily determined by the laws of supply and demand and to some extent by OPEC. When people are quarantined and not driving, there is little demand for gasoline, resulting in the low price. Now that people are driving at pre-pandemic levels, this demand raises the price of gas. Or so I thought. I didn’t realize President Biden set the price of gasoline.
I was taught that nearly full employment, as we have now, resulted in inflation because more people have disposable income and this increases the demand for products. Again, a matter of supply and demand. I learned that product availability is heavily dependent upon the global supply chain and having enough workers to produce these products and truck drivers to deliver products to markets. I didn’t realize that President Biden set the prices of every commodity and controlled the world’s supply chain.
I’m left wondering what other economic calamities President Biden is responsible for and how he came to wield such power.
Geoff Briggs
Edmonds
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