(CNSNews.com) - President Joe Biden blamed “the current spike in gas prices” on Russian President Vladimir Putin, adding that the other reason “why prices are high now” is because of COVID.
“But let’s be absolutely clear about why prices are high now. They’re high for two reasons. One was COVID. The way the global economy works: If a factory in Taiwan that makes computer chips shuts down due to a COVID outbreak, it causes a ripple effect to slow down auto manufacturing in Detroit — literally, not figuratively,” Biden said during a speech at the National League of Cities Congressional City Conference in Washington, D.C.
So, because of the pandemic, we had significant disruptions in the supply chain, and our supply chain is so important with so many materials that come from other places. At the same time, because the Rescue Plan boosted the strength and speed of our recovery, Americans had more money in their pockets.
And during the pandemic, they wanted to spend that money not on restaurants and vacations — because of COVID — but on hard goods: home improvements, televisions, automobiles, but the lumber factories weren’t open. They weren’t making two-by-fours. Plywood wasn’t available. I can go down the list.
The very products that we needed for the things they wanted to buy are slowed down by disruptions in the supply chain. So what happens? Prices went up significantly.
Just look at automobiles. Last year, automobiles — new automobiles accounted for one third of all the inflation in America, because the auto companies couldn’t get the computer chips, the price of an automobile skyrocketed.
And now, the second big reason for inflation is Vladimir Putin — and gas prices. Not a joke. We’ve seen the price of gas go up over a dollar just since he put his troops on the border — on the border of Ukraine. It went up a dollar and five cents.
A big part of that reason is Putin began amassing troops along the border and then crossed, and guess what? The world took notice. The market anticipated; prices went up, and then Putin invaded.
Make no mistake: The current spike in gas prices is largely the fault of Vladimir Putin. It has nothing to do with the American Rescue Plan.