Why are gas prices so high Of all the people Thursday’s CNN Newsroom host Poppy Harlow could have invited to give an answer to that question, she decided on former Obama Chairman of the Council of Economic Advisers, Jason Furman. Furman came to tell viewers that White House claims about Vladimir Putin’s guilt are incorrect.
Harlow began by wondering about another Democratic talking point, “I’d like your take as an economist and as someone has worked in the Obama Administration on a number of Democrats both in Congress and officials in the White House pointing a finger at companies saying price gouging.”
After reporting oil executives will be meeting at the White House next week, she asked, “As an economist, what do you make of this White House argument that corporate greed is making the situation worse? Is there merit to it or is it politics?”
Furman didn’t directly answer the price gouging question, saying it was a matter of debate, but ultimately blamed Putin instead, “I think right now the main thing going on with oil is an increase in the global price of oil, that’s the main thing I see. It’s the, it’s President Putin, not the oil companies.”
To back up his assertion, Furman gave a lesson in supply and demand, “But I don’t think that the White House is arguing that greed as a whole is causing inflation, that’s why they’ve said they want The Fed, their number one policy recommendation, is that The Fed needs to bring down inflation. The truth is that demand is extremely, very high and supply isn’t sufficient. When that happens, prices rise. The only way to solve it is more supply or less demand.”
There was only one way to replenish that supply.
This segment was sponsored and produced by Carvana.
The transcript of the show, June 16, is available here:
CNN Newsroom: Poppy Harlow, Jim Sciutto
6/16/2022
10:00 AM ET
POPPY HARLOW: I’d like your take as an economist and as someone has worked in the Obama Administration on a number of Democrats both in Congress and officials in the White House pointing a finger at companies saying price gouging. Our Matt Egan just informed us that the White House invited the major oil executives next week for a meeting. This is after a White House official called their profits quote “outrageous” and President Biden, a few weeks ago, said “Exxon is making more money than God.”
As an economist, what do you make of this White House argument that corporate greed is making the situation worse? Is there merit to it or is it politics?
JASON FURMAN: Look, I think that you can look at individual industries. The White House has talked about meat packing, shipping, and now it’s talking about oil and you could debate, you know, in each one of those industries, was there gouging, you know, what should be done about it?
I think right now the main thing going on with oil is an increase in the global price of oil, that’s—
HARLOW: Right.
FURMAN: — the main thing I see. It’s the, it’s President Putin, not the oil companies. But I don’t think that the White House is arguing that greed as a whole is causing inflation, that’s why they’ve said they want The Fed, their number one policy recommendation, is that The Fed needs to bring down inflation. The truth is that demand is extremely high and supply is not sufficient. When that happens, prices rise. The only way to solve it is more supply or less demand.