(UnitedVoice.com) – It appears that newly inaugurated President Joe Biden intends to fulfill a campaign promise with little notice or fanfare. Last summer and fall, Biden promised that he would forever end the fossil fuel industry. On his first day in office, the new president signed an executive order killing a major pipeline, potentially creating significant economic and foreign affairs problems.
The Keystone XL pipeline has been a source of controversy from its inception. In and of itself, it wasn’t controversial. Yet, because environmental groups, in particular, objected so harshly to moving oil from Canada through the United States, it became an issue. In 2008, oil prices were at an all-time high, and America was dependent on foreign oil to meet its energy demands. The pipeline would allow for quick, easy and safe oil movement from Alberta to the United States, where it would be distributed to refineries and eventually to consumers.
Former President Barack Obama made the issue even more political by how he handled it. He blocked it at every turn. It wasn’t until President Trump signed off on the permits that the issue went away. Now, Biden has brought it back, and even the Teamsters decried the move saying 8,000 union jobs are affected by Biden’s action.
However, the president’s devastating executive order creates consequences beyond lost jobs that impact America.
What Are the Consequences to Everyday Americans?
As America wrestles with the continued fallout of COVID-19 and governor-induced shutdowns across Democratic states, the economy is struggling to recover. Biden’s executive order causes speculators in the investment market to assume the supply of oil will decrease. Therefore, they anticipate the value of oil will increase.
It’s simple supply and demand. Gasoline is a byproduct of oil in the refining process. If gas supplies go down and demand goes up as people receive the vaccine over the coming months start traveling again, prices could skyrocket. Complicating matters, on January 11, gasoline prices were already at pre-pandemic levels due to manufacturing limitations and refinery shutdowns for maintenance. That’s despite demand plummeting at the gas pumps.
What will gas prices look like a few months from now?
It’s been proven that energy price increases impact the lower and middle class the hardest. It eats into their discretionary income as the cost of food and other goods go up to pay for transportation costs.
But it’s more than that… oil and gasoline touch virtually every part of our economy and will affect the prices of everything one buys, from electricity and home heating oil to bottled water. If something uses plastic, an oil by-product, prices must go up to account for the increased cost of oil.
This was one reason why the wages didn’t increase for nearly a decade. As prices for goods go up and wages stagnate, the purchasing power of money goes down. Under former President Trump’s policies, America’s energy independence, for the first time in decades, caused a significant part of the booming economy we experienced. Now, Biden’s policies threaten that economy in general and working families in particular.
Many on the left say it’s okay to sacrifice a few for the greater good. However, whose greater good?
Biden is on the road to repeating the mistakes Obama made that led to Donald Trump’s rise. It appears he, and the Democratic Party, haven’t learned.
Don Purdum, Independent Political Analyst
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