Because we live in a global economy, American politicians, despite their promises, have little impact on inflation. War – and oil producers – have huge impacts on inflation. If politicians tried to control prices to benefit consumers, corporations and citizens alike would cry “Socialism!”
The price at the pump is controlled largely by supply and demand, not by politicians. The United States is the top producer of oil and gas in the world. If American oil companies chose to sell product only in the United States, American citizens would enjoy lower prices and oil independence. But companies prefer to sell overseas, where there is lower supply, greater demand and – of course – larger profits. That’s our “free market” in action. And a free market sometimes means reduced supplies and higher prices here at home.
The U.S. government does not control oil exploration or drilling. It merely issues permits for drilling on public lands. Privately owned oil companies control how much drilling takes place. During the COVID-19 pandemic, when the demand for oil and gas dropped precipitously, American companies cut back on production. Returning to pre-pandemic production levels took time, which drove prices up as demand outstripped supply. In early October, OPEC – a group of other major oil-producing countries – decided to cut back on production. These decisions have made gas prices, and the price of most other goods, much higher.
Bottom line: Voting is critical, but so is knowing what you’re voting for – or against.
Carole Gardner
Alna
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