Could Stimulus Checks Solve Skyrocketing Gas Prices?

Gas prices are higher than ever. 

The internet is rife with memes and articles both lamenting and poking fun at the extremely high price of fuel. But regardless of the lightheartedness of much of the commentary, the reality is, these gas prices can be truly financially burdensome.

For many, gas is an absolute necessity. They need to fuel their cars to drive to work, get groceries, and pick up their children. There’s simply no alternative when you depend on a gasoline-fueled vehicle for so much of daily living.

And unfortunately, the insane price of gas is completely outside of the consumer’s control. It’s not a matter of typical supply and demand that’s sent gas prices soaring.

Why is Gas so Expensive Right Now?

While many have blamed the current presidential administration for the rise in gas prices, the unfortunate truth is that they are more or less out of the US administration’s hands.

Gas prices have been rising steadily for quite some time. One of the biggest reasons for this is banks and investors. 

Seeing that gasoline has many negative environmental consequences, there’s been a steady decline in the willingness of financial institutions to give companies funding for fossil fuel extraction. 

Morally, drilling for oil has drawbacks when considered in the context of climate change. 

But even beyond the moral ramifications, consumers are more and more considering the ethics of their purchases. This means that people are shifting to electric vehicles when they can, making it riskier to invest in fossil fuels. 

The market for fossil fuels is decreasing.

Despite this decrease though, new electric vehicles are often financially unattainable for consumers. This means many are still reliant on gas-powered vehicles.

But the lack of investment means that the demand for fossil fuels is higher than the supply. This is a big part of why gas is currently so expensive.

Russia’s Impact on Gas Prices

Further spiking gas prices, Biden has imposed a ban on Russian oil imports as a response to Putin’s invasion of Ukraine. 

Ethically, there is little choice here. It would be hugely morally reprehensible to continue to support Russia’s economy knowing that they would use that money to invade another country.

But just because it’s ethically correct doesn’t mean it doesn’t have consequences. The ban has further reduced the supply of oil in America, leading to even higher gas prices than usual. 

The result: regular unleaded gas going for upwards of 4 dollars a gallon. 

How this Impacts Consumers

As mentioned above, many people have no choice but to purchase gas. They need gasoline to get to work and perform basic tasks of daily living.

With gas prices so high, they are having to budget harder, go without, and work more hours to make up for the new financial burden.

The government is keenly aware of this struggle, which is why a new stimulus check may be on the horizon.

Proposing a Gas Stimulus Check

Two Democratic lawmakers have proposed a stimulus check to ease the burden of gas inflation on Americans.

Representatives Ro Khanna and Sheldon Whitehouse are pushing to pass a monthly rebate on gasoline.

The rebate would provide 100 dollars a month to single filers earning less than 75,000 dollars a year and joint filers earning less than 150,000 a year.

This rebate would help workers maintain their typical standard of living, eliminating the need to work extra shifts and helping workers avoid burnout or having to go without.

It remains to be seen if the idea will garner sufficient support in Washington, but if it does, many will breathe a sigh of relief.

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