If your lord and savior is the former guy read no further as this post may possibly upset you. Which is not my intent. As it is, I’m likely going to be derided as an elitist by certain of my friends anyway. Nevertheless, this real-life illustration of magical economic thought is worthy of sharing.
It is not fake.
For some people this is their belief system. Economic and otherwise.
Heretofore I made no mention-of, or couched anything I posted in a political context. I was just sticking with the data. It did not take long for the worm to turn.
To set the stage, a commentator had previously advanced the notion that the former guy’s economy was the best ever in all of history. Naturally, this is a subjective conclusion. I did not challenge it as the pre-pandemic economy under the former guy was in-fact doing swell. Between you and me this blogger was enjoying the ride.
Nevertheless, I suggested that if something is held-out as the best in history - as bold a conclusion as that should be supported by data.
Alas, the commentator reached for a bridge too far adding (without any supporting evidence) that under the former guy's administration gasoline had also fallen to $.99 a gallon.
I did point-out that when the economy cratered in early 2020 the price of crude oil plummeted as global travel dried-up. Gasoline prices tracked downward as expected. Not likely to $.99/gal - but prices did fall considerably.
To which the commentator suggested that it was the former guy who negotiated cheap crude oil prices thereby keeping gasoline prices low for all of us.
So there you have it. What I learned about supply-demand pricing of fungible commodities is of little utility. All you have to do is simply negotiate a lower price for a globally-traded commodity such as crude oil - and voilà - $1.50 gasoline. Presumably, that is the price at the pump so state and federal taxes are included. All-in the actual refinery price is much lower.
I suppose with Apple Inc. trading in the neighborhood of $143 a share (NASDAQ: AAPL) the former guy should be able to negotiate for us a cheap double digit price around $72 a share?
Just kidding. You readers are smarter than that. You know I'm being snarky.
But on a serious note it is clear to me that in some circles the belief system is dismissive of labyrinthine and complicated financial markets. An article of faith suggesting that only a single key individual's negotiating skills is all that is needed is easier to digest. And just like magic - low commodity prices materialize. As a recovering financial guy I have to wonder how the commentator (above) navigates saving and planning for retirement. And $3.00+ gasoline.
This is a head-scratcher for sure.
I'll spare you readers the rest of the painful discussion thread. When pressed for supporting evidence only argumentative opinions were forthcoming and the comments basically ended with the accusation that I was a Biden supporter. That, my friends, is an intellectual cop-out. A lame deflection used by someone bereft of facts.
Nonetheless, it was a fascinating thought exercise while it lasted - concluded with lazy thinking.
The late great PT Barnum had a term for those who embrace such belief systems.
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There is a population of conservative, center-right and independent-minded voters who place a high value on facts and the truth. Marginalized because they do not demonstrate sufficient fealty and obeisance to the former guy - exile is their cross to bear.
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