Fuel prices at a gas station in Pittsburgh, USAMOSCOW, 25 Jun. Joe Biden's claims that Vladimir Putin is responsible for soaring US gas and consumer goods prices are false and harmful to the US economy. This was stated by The Wall Street Journal columnist Holman Jenkin, Jr. As the author of the article recalled, 55% of the current increase in fuel prices in the United States occurred from December to the end of February, when the Russian special operation in Ukraine began. In addition, the rise in retail gasoline prices was disproportionately large compared to the underlying rise in oil prices.Putin called the irresponsibility of the G7 countries the reason for the growth of inflation in the world»So something else is happening, and this something is a normal adaptation to an anomalous event: a two-year pandemic that shook the demand for gasoline. This led to the shutdown of dozens of oil refineries, some of which (especially in the US) were so loose that there was no point in restarting them. Then add 13 percent cumulative inflation since the beginning of 2020 to these supply-demand effects, «Jenkins explained. One of the main mistakes of the Biden administration, the author called the desire to blame the Kremlin's miscalculations.» If you suspect that the five-dollar-a-gallon gas price is because the United States and the world keep Russian energy out of the market, think again: The US and its allies have largely failed to keep Russian oil on the market. market. This was a big omission of the alliance,» the observer believes. Jenkins stressed that the real reason for the price increase should be considered not only the prevailing global circumstances, but also the wrong reaction of the authorities of Western states to them. «Joe Biden's constant reference to 'Putin's price increase' is thrice false: it largely misunderstands the cause of the rise in gas prices, exaggerates Putin's leverage, and exaggerates the courage of the Western response. Unfortunately, this is all the result of a deeper problem that is not related to Trumpism «, Bidenism or some other -ism. The nature of Western politics has changed in the post-Cold War era. It is undermining its own best strength — the ability of the market economy to adapt, innovate and cope with shocks, «the author of the material said.
Americans are locked in at home because of gas prices. Jenkins said that a reversal in the market system is the result of a rent-seeking American economy that seeks to manipulate legislation and economic conditions, rather than improve production. «After 50 years of absorbing the political realities of Washington, seeking to rent, one might wonder if Biden sees the real world at all. If there was ever a time for establishing realism in Western governance and politics, it is now, when the stakes in politics are suddenly not so trivial, «concluded the columnist. After the beginning of the Russian military special operation to demilitarize and denazify Ukraine, the West stepped up sanctions pressure on Moscow. Some countries have announced the freezing of Russian assets, many brands have left the country, calls have become louder in Europe to reduce dependence on Russian energy resources. The Kremlin called these measures an economic war the likes of which have never been seen before. At the same time, the sanctions also affect the Western countries themselves, where there is a serious rise in the price of fuel and food. for oil
