White House Press Secretary Jen Psaki told reporters at a Nov. 12 briefing that rising gasoline prices—which are up around 60 percent from a year ago—are a strong argument in favor of more government spending on green energy solutions, while dismissing suggestions that the Biden administration’s policies like halting new oil and gas drilling leases were causing pain at the pump.
Psaki was responding to a question from a reporter who noted that Republicans, in particular, have blamed President Joe Biden’s policies—including canceling the Keystone XL pipeline permit and freezing new oil and gas drilling leases on federal land and water—for contributing to a rise in gasoline prices.
The press secretary added that the administration’s focus with regards to rising gasoline prices has chiefly been to ask the Federal Trade Commission (FTC) to investigate possible instances of price gouging and to call on the Organization of Petroleum Exporting Countries (OPEC) and its crude-producing allies, dubbed OPEC-plus, to pump more crude.
Psaki added that, while “certainly there are a range of other domestic options” to help reduce prices at the pump, she didn’t have “anything to preview at this point in time” in this regard, with her response following a question about whether the Biden administration was considering releasing barrels from the Strategic Petroleum Reserve.
Pressed on the broader issue of inflation, which is running at a near 31-year high, Psaki acknowledged “big, big costs on people’s households” adding that its “certainly of concern to the President.” At the same time, she said that a “vast majority” of outside economists predict that inflation will slow down next year.
Psaki also said that “economists across the board” agree that Biden’s infrastructure bill and his Build Back Better agenda “will ease inflationary pressure over the long term.”
Biden said “17 Nobel Prize winners in economics have said that my plan will ‘ease inflationary pressures,’” arguing that the recently-passed infrastructure bill would reduce supply-side bottlenecks and “make goods more available and less costly.”
“The only debate on Capitol Hill is how much more gas to throw on the fire,” Davidson said.
“It gets bigger, and that’s the Democrats’ agenda—they want to throw more on with Build Back Better,” he said, adding that “it’s going to dump a lot of extra spending into the economy and it has a big impact” on inflation.
Psaki, in Friday’s briefing, accused Republicans of “screaming about inflation” and using the issue as a “political cudgel” while being uncooperative in searching for a solution to the problem, which she argued should come in the form of backing Biden’s big-ticket spending plans.