Food-To-Fuel Conversion Won’t Fix Biden-flation

“I’m doing all in my power through executive orders to bring prices down and resolve Putin’s price hikes,” President Biden stated Tuesday in Iowa.

This was just minutes after the Labor Department revealed inflation increased 8.5 percent over the last 12 months, the highest percentage in more than 40 years.

Biden was in Iowa to advocate for the EPA’s decision to provide an emergency waiver allowing E15 gasoline (with 15% ethanol) to be marketed during the summer season when it is generally banned, due to poor air quality.

Things Are Bound To Get Worse

The White House asserts that permitting E15 to be sold during the summer will help consumers save money on gas.

However, with only 2% of gas stations in the country selling E15, and with the world on the verge of a global shortage of food, now may not be the best time to be trying to turn food into fuel.

Grocery prices have gone up 10% in the last year, and turning grain into gas would worsen.

What would genuinely bring down energy prices is Biden’s unwavering commitment to doing everything possible to boost American fossil fuel output.

Regrettably, Biden has been doing just the opposite. 

In his first week in power, Biden halted all new oil and gas licenses on public lands.

He increased the cost of development on private lands through regulation and increased the cost of energy transportation by rejecting the Keystone XL project.

His SEC commissioners recently increased the cost of fossil fuel production by requiring all publicly listed corporations to disclose to the government “climate-related risks annually.”

Another way for Biden to help contain inflation is to publicly proclaim that he is abandoning his major domestic policy initiative, Build Back Better, in favor of a federal government expenditure freeze.

Above all, this would send a strong message that the faucet of federal spending fueling this inflation has been shut off.

90% Biden’s Fault

In fact, analysts at the Federal Reserve Bank of San Francisco issued a report that while prices are up in many affluent nations, it is primarily due to the federal government’s massive stimulus spending.

Since the epidemic began, the federal government distributed more than $800 billion straight to households, the bulk of which came when Biden and Democrats gave everyone $1,400 as soon as they took office.

It has been outpacing other developed countries since the first half of 2021. Income transfers from the United States may have led to a roughly three-point rise in the fourth quarter of 2021.

As seen by his attempt to transfer blame on Russian President Vladimir Putin and his brutal invasion of Ukraine, Biden is trying to absolve himself of responsibility for the economy’s inflation issue.

As bad as the conflict is, inflation already soared from 1.7% when Biden entered office to 7.9% on the day Russia invaded.

This suggests even if Putin is solely responsible for hyperinflation since the conflict began, Biden is still accountable for more than 90% of the remaining price increases.

With wages rising by only 5.6 percent in the last year, this equates to a 2.7 percent pay cut under Biden. It’s not surprising that more than 60% of Americans disapprove of Biden’s management of the economy.