Joe Biden’s now-infamous tweet demanding gas station owners to lower pump prices “and do it now” exposed how out-of-touch the White House is with the retail economy and small business in particular. (RELATED: Senate Democrats Pushing $250 Billion Tax Hike on Small Business)
As is usually the case, such high-profile gaffes are also prime teaching moments. And that’s exactly what The Wall Street Journal did in a story on the microeconomic reality facing small franchisees. Here’s an excerpt on what drives prices:
When wholesale prices go up, gas station owners tend to raise the price at the pump slowly so as not to discourage customers from stepping inside their convenience stores, where they generate most of their cash.
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When wholesale prices go down, the owners also tend to lower prices more slowly because they have to recoup what they have already paid to fill the tanks. Just how fast they are able to sell their stock depends on an array of factors including consumer demand, regional competition and storage size.
And then there are the costs Mr. Biden appears to be entirely unaware of:
On top of fierce competition, retailers have to factor in credit card transaction fees, which can increase alongside prices. Dan Lukasavitz, who leases a BP-branded station in Dayton, Ohio, said he receives a fixed commission of 6 cents a gallon as part of a contract with a fuel distributor. But in the past few weeks, credit card fees increased to upward of 10 cents a gallon, leaving him with a loss on sales, he said.
“Our profit margins are gone right now,” he said.
It’s easy, and all too common, for a politician to cast blame on anyone or anything besides his own failings. The Biden administration has blamed a host of items for high pump prices – from corporate greed to Putin to Republicans to the guy running the corner gas station.
It’s important to remember that every time Mr. Biden points the finger of blame, three fingers point right back at him.
The opinions expressed in this article are those of the author and do not necessarily reflect the positions of American Liberty News.
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Norman Leahy has written about national and Virginia politics for more than 30 years with outlets ranging from The Washington Post to BearingDrift.com. A consulting writer, editor, recovering think tank executive and campaign operative, Norman lives in Virginia.
Joe Biden created everything that’s happening to take our economy down in America today. shutting down pipelines canceling fossil fuels and all his other bad policies, are the reason For the hardships we the people are suffering today.
Proving again that Brandon Know nothing about business. At least not “legitimate” business.
How can Obiden that has been in government over 50 years not know how our economy works? He is a crook overseeing his family crime spree. He knows how to do that.
Because he’s been in government for 50 year.
Someone needs to ask our cognitively challenged so-called president whether, or not he understands the meaning of suffering! He has no clue and hasn’t had a clue since he first began his senatorial job!
Do you wonder at all why millions of barrels of oil are being shipped to China from our US National reserve is not a national security risk to our Nation? It’s your oil also paid for by American tax payers. China first policy are failing across both parties. Traitor or Trader ?
They are giving China the barrells of oil free? I doubt they are paying for it as they are loading the account of Hunter and He is inturn handing over a wopping amount to the “Big Guy Joe”
The tweet fits right in with Democrats….didn’t they demand that a whole class of people work for no pay at one other time in our history?
No democrat has ever understood economics 101. They still, after a century of being debunked, insist Keynesian economics is a thing. and use it for everything they can to fk things up even further.
I all the history of the US, was there ever a fking demon rat who understood even them most basic elements of economics?