During Thursday’s so-called “reality check” segment on CNN’s Neue DayJohn Avlon criticized everyone except President Biden for the skyrocketing gas prices and inflation that has impacted millions. Avlon complained that Republicans are criticizing Biden for a struggling economy and suggested that there was “something more sinister at work.”
After implying that Republican concerns with inflation and gas prices are simply “campaign style talking points,” Avlon claimed that oil companies have the power to lower prices and that high prices are a result of rapid COVID economic recovery:
The OPEC cartel is also reaping the benefits at the expense people who use the pumps worldwide, as it could reduce prices through increasing supply. Both OPEC as well big oil prefer Republicans to be in power, for reasons ranging anywhere from less emphasis on rights and denial about climate change. Their decisions are influenced more by profiteering than mere partisan politics. Gas prices may be an issue of politics, but presidents have very limited power to reduce them. Topping off the strategic petroleum reserve can be seen more as symbolic than actual market movement. This is an international issue if we take a step back. The result of a relatively quick recovery from COVID lockdowns as well as an increase in the demand for oil once the world starts moving again. Inflation is also affected by this.
He continued to diminish inflation concerns by citing similar economic struggles globally, as if this indicated Biden’s powerlessness to remedy American policy issues. Avlon dismissed “Republican attempts to blame Biden” as “politically predictable” but “not all that credible,” but then acknowledged that “the trillions in COVID relief payments passed under Trump and Biden This may have contributed to some inflation.”
In what should have been no surprise, Avlon turned the discussion into an advertisement for Biden’s liberal spending agenda, claiming that “if politicos actually wanted to help families for whom inflation and gas prices are affecting the most, they’d probably try to pass the Build Back Better plan, ‘cause it would reduce costs for child care and elder care while providing pre-k and paid parental leave.”
In a last cover for Biden, Avlon concluded: “Bottom line, these are global problems reflecting an interrelated world, emerging from an unprecedented pandemic, and blaming Biden alone is about as foolish as Trump saying the virus was part of a plan to rig the election.”
CNN claims that President Obama is responsible for all the US’s economic problems.
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CNN’s Neue Day
11/18/21
8:35 AMJOHN BERMAN – This morning’s news is that the Biden administration has asked states and localities for COVID relief funds to offset skyrocketing energy prices. Biden is blamed by the Republicans of Congress, but do they really believe that? John Avlon gives the truth check.
JOHN AVALON: Paul Gosar was censured yesterday. Voting came down to whether it was okay to threaten to kill colleagues. It shouldn’t seem like a difficult decision. This is especially true after the January 6th. Of course, the majority of Republicans did not want to have to do this. Only two of his supporters voted for him. The rest deflected with campaign-style talking points such as this.
PAUL GOSAR (President): The cartoon was taken down by me voluntarily, and not as a threat to my safety, but rather because I thought that it was. As Alexander Hamilton was the first to attempt censure by this House’s House, I am obliged to join him.
KEVIN MCCARTHY (Pelosi President): All members mentioned above will require approval from a majority for these positions to be kept in the future.
AVLON : The two main points I found most interesting were gas prices and inflation. They were repeatedly brought up. Let’s face it, the question is still open. Inflation is a real concern for Republicans who blame Biden for high gas prices. They reduce real wages. They create the impression that the economy has fallen apart despite all the indicators pointing to an economic recovery. Is it possible that Biden’s policies were to blame? Or, did the President ask the FTC if there was something else at play? The truth is that neither side will be satisfied with all the answers. We’ll start by looking at gas prices. They have reached seven-year records. Oil prices are on the rise. As Matt Egan, our colleague, points out, US oil companies have a history of increasing production when there is a slight increase in prices. However, the oil industry is not in a hurry to fix Biden’s gas price problems. To make up for the huge price drop during COVID when oil prices plunged, oil companies made record profits. Oil production has fallen 14% since COVID, even though it’s risen more than 65%. Wall Street cheers as oil producers have had a terrible decade, while electric cars hurt their long-term business.
It is similar to the OPEC cartel which can lower oil prices and increase supply. However, it has been reaping huge profits at the expense for people pumping their money around the world. Both OPEC, big oil and the US would prefer Republicans as their leaders. From less emphasis on human rights, to denial about climate change, there are many reasons why OPEC and big oil would prefer Republicans in charge. However, profiteering influences their decisions far more than mere partisan politics. Gas prices may be an issue of politics, but presidents have very limited power to reduce them. Topping off the strategic petroleum reserve can be seen more as symbolic than actual market movement. This is an international issue if we take a step back. The result of a relatively quick recovery from COVID lockdowns as well as an increase in the demand for oil once the world starts moving again. That’s also true of inflation. However, the global supply chain woes remain global. There are signs that things may be improving, but it’s not easy. This is why inflation has been increasing around the globe. China’s industrial producer prices index rose 13% in the last month. The UK’s inflation rate is now at its highest level in ten years. In Germany, it’s a 28-year high. The U.N. reports that world food prices are at an all-time high of 30%. This is not a U.S. issue.
Biden’s attempts to blame Republicans for their political inevitability are therefore not credible. Although the billions of COVID payments made under Trump and Biden contributed to some inflation, the relief helped families to stay afloat in order to prevent the economy sinking. If politicos actually wanted to help families for whom inflation and gas prices are affecting the most, they’d probably try to pass the Build Back Better plan ’cause it would reduce costs for child care and elder care while providing pre-k and paid parental leave. Biden’s decision regarding the Fed chair will make the most impact on taming inflation. Domestically, it is most a matter of monetary policy. That said, Paul Volcker was the greatest inflation hawk to ever serve, and his decision not to increase interest rates certainly didn’t help Jimmy Carter. The bottom line is that these problems are worldwide and reflect an interconnected world. Trump claiming the virus was part a conspiracy to rig the elections is just as stupid as blaming Biden. Here’s your reality-check.
BERMAN – John Avlon, we are grateful for your kind words.
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