BECAUSE DEMOCRATS: One reason why oil prices are soaring.

Let’s look at yet another piece to the rising price puzzle, one our leaders have had more than enough influence over. The public is driving more these days, and that relates to government efforts to counter COVID-19 hardships by essentially printing several large stacks of money and shipping it to consumers. When the money rolled this past March, the public literally rolled out. Having been somewhat housebound and unable to fly, they got in their cars and hit the road. As indicated inside the dashed circle in the chart below, at about the time of the COVID-19 relief payments, there was a more than 50% increase in U.S. miles driven, and much of the increased driving is still taking place. And yes, there was a significant increase in demand for gasoline along with it.

It’s interesting that our leaders in Washington never wish to admit that the steps they’ve taken to soften the blows of COVID-19, which may be desirable and helpful in many respects, still do come at a cost. The trillions of additional dollars in circulation, beyond casting a shadow on government balance sheets, are inflationary.

Why, it’s almost as though Milton Friedman was running the show all along.