WASHINGTON, D.C. – Inflation has struck the auto industry yet again, with prices rising on used and new vehicles. Inflation has also impacted the auto repair industry, raising costs of parts and labor.
Car prices rose at a fast clip month-over-month. Used cars, new cars, auto parts, and car rentals together added 15 basis points to headline CPI inflation in October. 4/
— Council of Economic Advisers (@WhiteHouseCEA) November 10, 2021
When it came to the hot market with used vehicles, we were all lead to believe it was because of the chip shortage from China due to COVID. When those chips arrived in the United States, everyone believed that the market would cool down. That theory proved to be wrong as the U.S. auto industry is seeing inflation yet again.
According to Breitbart News, the prices had started to fall 1.5 percent in August of this year and .7 percent in September. While that appeared to be on the right track, inflation struck again in October of 2021 when prices rose 2.5 percent. Overall, compared to last year, prices are up a whopping 26.4 percent.
That means that a used vehicle that cost roughly $40,000 last year is now worth over $50,000 this year. While that may seem great for auto owners who are looking to upgrade, the prices of new vehicles have also risen, making it almost a wash in terms of selling and buying a vehicle.
Regular reminder: If 2021 inflation rises 6.2% and your salary rises 2.2% then – even if both revert to normal next year – not only did your real wage drop 4%, it will remain 4% below the pre-2021 trend for the rest of your career. Even transitory inflation has permanent costs.
— Brian Riedl 🧀 (@Brian_Riedl) November 10, 2021
New car prices have risen 1.1 percent in October and overall have seen a 9.2 percent increase throughout the year. New truck prices, which are a hot commodity now, have risen 10.5 percent over the last year, 1.5 percent in October alone.
Inflation has not only impacted the value of vehicles, new or used, but it has also hit everything needed to repair and maintain vehicles. Bodywork has increased 6.8 percent compared to this time last year. Additionally, oil, coolants, and other fluids have risen 11.3 percent from this time last year.
Bidenflation splits the nation:
GOP heartlands are being hit hardest by Joe Biden's rampant rises in the cost of living compared to Democrat coastal elites
City dwellers in more conservative states are feeling the brunt of the nationwide high inflation.
— Scotty Smooch MaGuire (@Smooch10046744) November 11, 2021
Of course, inflation has not only hit the auto industry, it has also hit everything throughout the country. CNN notes that prices have increased throughout the country by 6.2 percent which they note is the largest increase since 1990, over thirty years ago.
While CNN and other mainstream media outlets blame the pandemic and labor shortage as the culprit, others, like the New York Post blame Democratic President Joe Biden and his policies.
The New York Post and Republican leaders note the shutdown of various pipelines and added environmental restrictions that limit the amount of oil the country produces each month. Because our production of oil is down, that is causing the United States to purchase more from other oil-producing countries, thus, raising the price of gas.
They also note that the United States is producing roughly two million fewer barrels of oil today as opposed to when former Republican President Donald Trump was in office.
The New York Post states:
“So, at $83 a barrel, this means we are losing about $165 million a day in national output and $50 billion a year. This has only given leverage to OPEC and the Saudi oil sheiks to raise prices – and there’s nothing we can do about it.”
Adding to the frustration of inflation is the response of President Biden’s Energy Secretary Jennifer Granholm when asked about how to get it under control. In early November, Granholm was asked about boosting the oil production in this country to help mitigate the rising cost of gas by Bloomberg Host Tom Keene.
He asked her:
“What is the Granholm plan to increase oil production in America?”
Her response was laughter. Granholm gave a hearty laugh at the question of gas prices rising, and when she was done having a good time, she said:
“That is hilarious. Would that I had the magic wand on this.”
Granholm went on to say:
“As you know, of course, oil is a global market. It is controlled by a cartel. That cartel is called OPEC, and they made a decision yesterday that they were not going to increase [production] beyond what they were already planning.”
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MICHIGAN- The “Tone Deaf” administration…aka the Biden administration is once again getting ready to put the screws to the American people.
As gas prices explode to their highest prices in years, nearly doubling in just over nine months, Biden and his team of American Marxists are looking to shut down an oil pipeline in Michigan, a move that would likely accelerate the cost of energy.
According to the Daily Wire, Biden and his cronies are gathering data on the pipeline in order to determine if shutting it down would further increase the price of fuel in the region.
“Revoking the permits for the [Line 5] pipeline that delivers oil from western Canada across Wisconsin, the Great Lakes, and Michigan and into Ontario, would please environmentalists who have urged the White House to block fossil fuel infrastructure, but it would aggravate a rift with Canada and could exacerbate a spike in energy prices that Republicans are already using as a political weapon,” Politico Pro reported.
“Killing a pipeline while U.S. gasoline prices are the highest in years could be political poison for Biden, who has seen his approval rating crash in recent months.”
A while back, the Canadian government invoked an old international treaty to prevent the state of Michigan from shutting down the pipeline, and currently the Biden administration has yet to make a decision about the pipeline.
According to sources, the Biden administration was seeking further information on potential impact of shutting down the pipeline to gain a clearer picture on how it would affect fuel prices, sources told Politico Pro.
The administration is under pressure from environmental groups who are angered that their far-left, economy-killing climate change agenda has been sidetracked primarily by Republicans with West Virginia Sen. Joe Manchin (D), who represents a coal state, also hesitant to bow to leftist environmental activists.
Politico Pro added:
Industry and environmental groups have argued over the impact that shutting down the pipeline would have on the region. Line 5 carries crude oil to a number of refineries in the area, both in the United States and Canada, and its owner, pipeline operator Enbridge, estimates it is responsible for supplying more than half the propane used for heating in northern Michigan. Prices for propane in Michigan have surged by 50 percent from a year ago, according to U.S. government statistics.
In contrast to the never-completed Keystone XL pipeline project, Line 5 has been operating since the 1950s and is a major energy supplier to Michigan and the region.
Last week, Bank of America warned gas prices could go exponentially higher than they currently are. For example, the average price of a gallon of regular grade gasoline stands at $3.41 per gallon across the country, while it is just over $4 per gallon for premium grade.
“Bank of America is now predicting that Brent crude oil, which drives gas prices, will zoom to $120 a barrel by June 2022,” CNN reported. “That’s 45% higher than current levels.”
Bank of America’s head of global commodities told CNN that last June, when he predicted the price of a barrel of crude would hit $100 people downplayed his prediction.
“It’s very easy for prices to shoot up when demand conditions are tight like they are now,” said Francisco Blanch. “Back [in June], people thought we were crazy. Now here we are. We are generally still quite bullish.”
Curious about how concerned the Biden administration is about gas prices? Look no further than another hack administration official, Energy Secretary Jennifer Granholm.
Fox News’ Sean Hannity blasted Granholm Friday, calling her out for actually laughing when questioned by a Bloomberg TV reporter’s question about energy prices.
“What is the Granholm plan to increase oil production in America,” host Thomas Keene started to ask Granholm.
The question wasn’t even completely out of his mouth when Granholm began laughing incredulously and leaned back in her chair with a grin on her face.
“Oh my, that is hilarious,” she said, then turned to blaming OPEC for the incompetence of the administration.
She said “the OPEC cartel” had refused to bow to Biden’s requests to increase oil production in the Middle East. As a point of reference, on January 19, 2021, the day before Biden was installed into office, the United States was energy independent, thanks to former President Donald Trump.
“Oil is a global market, it is controlled by a cartel—that cartel is called OPEC,” Granholm told the reporter like a schoolmarm lecturing elementary school students.
Hannity blasted Granholm’s indifference and lack of concern for the American people.
“What is funny about that? We were energy independent. Instead of begging OPEC and getting rejected for the ninth time, we can produce more oil, more gas right here in America,” Hannity said. “It creates high paying career jobs in the energy sector. It reduces shipping costs.”
A number of U.S. states—Alaska, North Dakota, Texas, New York, Pennsylvania, and West Virginia are rich in fossil fuels, including oil, natural gas and/or coal depending on the region.
Hannity also defended Manchin, who has been repeatedly accosted by far left American Marxist green activists. He noted that Manchin’s state of West Virginia relies heavily on the energy industry and he is merely looking out for the interests of his constituents.
Editor note: In 2020, we saw a nationwide push to “defund the police”. While we all stood here shaking our heads wondering if these people were serious… they cut billions of dollars in funding for police officers.
And as a result, crime has skyrocketed – all while the same politicians who said “you don’t need guns, the government will protect you” continued their attacks on both our police officers and our Second Amendment rights.
And that’s exactly why we’re launching this national crowdfunding campaign as part of our efforts to help “re-fund the police”.
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