Target CEO Says Biden Gas Tax Holiday Would Spike Demand

Would it, though?

(Yahoo Finance) Target (TGT) CEO Brian Cornell isn’t convinced that a potential federal gas tax holiday, an idea floated by President Biden on Monday, is a real solution to the elevated gas prices facing drivers across America.

“We have a classic supply and demand challenge,” Cornell said at an event held by The Economic Club of New York. “And in all due respect to a gas holiday, it’s only going to fuel the demand. It’s doing nothing to increase supply. So that’s a temporary, almost a mini stimulus, but it’s time to fundamentally change the supply and demand curves for fuel and transportation.”

The proposal, which would require congressional approval, could save consumers as much as 18.4 cents per gallon. The national average for a gallon of gas currently hovers just below $5 per gallon, according to AAA.

Stewart Glickman, energy equity analyst at CFRA Research, recently echoed that sentiment.

“If we’re going to get U.S. gasoline prices to fall, it’s probably not going to be a supply-driven solution,” Glickman told Yahoo Finance. “The solution here, unfortunately, is probably a recession that kills demand and reduces scarcity of supply.”

Would saving a whopping 18.4 cents create that much more demand? Would it incent people to travel more? To head to the beach or the mountains for the weekend? He’s right though that it is a temporary gimmick (my word), and does nothing to change supply. The problem with a recession is that it still doesn’t fix the issue unless the government gives approval for new refineries. Biden and his Comrades won’t be able to to force people into EVs, because a) people won’t have the money for them, and b) there still won’t be enough energy production to charge them.

And you don’t fix a problem made way worse by stimulus with more stimulus. Biden doesn’t want to fix the problem, otherwise he’d be looking at emergency authorization for more refineries. He wants there to be paid to instituted his climate cult policies.

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