Amazon CEO Jeff Bezos chastised President Biden for blaming rising gas prices on gas station operators, accusing the commander-in-chief of "misdirection" or a "deep misunderstanding" of economic realities.
Bezos, the country's second-richest person, responded to Biden's remark on Twitter later Saturday. In an interview with Fox News, National Security Council spokesperson John Kirby disputed Bezos' accusation that Biden was purposefully misleading.
Jeff Bezos Clashes With Biden Administration Over Inflation
The back-and-forth comes as Americans face high gas costs due to Russia's invasion of Ukraine and increasing inflation. This year, gas prices in the United States reached all-time highs. The average price of a gallon of standard petrol was $4.81 on Sunday, up from $3.12 a year earlier.
Ouch. Inflation is far too important a problem for the White House to keep making statements like this. It’s either straight ahead misdirection or a deep misunderstanding of basic market dynamics. https://t.co/XgKfEICZpk
— Jeff Bezos (@JeffBezos) July 3, 2022
An industry analyst warned last month that if hurricane season creates severe interruptions for US oil refiners, prices might jump much further - to apocalyptic levels. The Biden administration has attempted to place most of the blame on Russian President Vladimir Putin's conflict, while also blaming oil firms for unfairly constraining supplies by refusing to drill on federally designated lease areas.
On Thursday, Biden warned reporters that US drivers will have to pay high fares for "as long as it takes" for Ukraine to overcome Russia's invasion.
The National Economic Council Director Brian Deese declared that in the interest of the "liberal international order," Americans will have to bear agony at the pump eternally, according to New York Post. In May, the billionaire slammed the Biden administration over the failed Build Back Better initiative, which he said would aggravate inflation.
The proposed law aims to raise taxes on wealthy individuals and major corporations to help support education, childcare, and climate change initiatives.
Joe Biden Blames Rising Gas Prices on Russia
The dramatic jump in prices, which Biden has mostly blamed on Russia's invasion of Ukraine, has become a hot subject in US politics ahead of the November midterm elections. It has also heightened tensions between corporations and certain Democratic politicians, who have accused corporations of price gouging.
However, FT reported, most economists say that multiple reasons, including a post-pandemic rebound, bottlenecks in supply chains, government stimulus driving strong demand, and the Ukraine crisis, have all contributed to inflationary pressures. The public fight between Bezos and the White House comes as the businessman increases his previous investments.
When questioned about Bezos' tweet, John Kirby, the National Security Council's strategic communications coordinator, said he took grave offense to charges of misdirection. Kirby added that the president has been open about his attempts to reduce gas costs, including the release of one million barrels of oil from the country's strategic reserves.
Kirby went on to say that before Russia invaded Ukraine, Biden made it plain that backing Kyiv would not be free to the American people. Meanwhile, White House press secretary Karine Jean-Pierre exacerbated the Twitter feud, claiming that gas firms had failed to cut pump prices despite falling oil prices, according to Fox Business.
But I guess it’s not surprising that you think oil and gas companies using market power to reap record profits at the expense of the American people is the way our economy is supposed to work.
— Karine Jean-Pierre (@PressSec) July 3, 2022
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