Some Presidential Candidates Don’t Understand Economics

The Gateway Pundit posted an article today about a recent tweet by Elizabeth Warren.

This is the tweet:

The article includes the following quote from an article posted at The Heartland Institute website on September 19, 2018:

A 2015 Harvard Business School/Boston Consulting Group study estimates fracking supported 2.7 million jobs in 2014, with the potential to grow to 3.8 million jobs by 2030. Similarly, PricewaterhouseCoopers (PwC) prepared a report for the American Petroleum Institute that estimates the oil and natural gas industries supported 10.3 million jobs in 2015, an increase of about 500,00 compared to 2011.  The RAND Corporation projects the industries will support an additional 1.9 million jobs by 2035.  By the same year, a 2012 IHS Markit study estimates fracking will have created 3.5 million jobs. 

A 2016 Chamber of Commerce study projects that if the fracking revolution of the previous decade had not occurred, 4.3 million jobs would not have been created, the U.S. economy would be $500 billion smaller and residential natural gas prices would be 28 percent higher. 

There is also the matter of national security. America now has the freedom to choose its friends without worrying whether or not our oil supply will be cut off. Some of us remember the 1970’s gas lines and high price of gasoline.

The world economy (that includes America) is currently based on fossil fuels. Countries who can supply reasonable priced energy attract manufacturing and businesses which create jobs. The end the production of fossil fuel and fracking in America is to reduce America to the status of a third-world (or lower) country.

Wrong Again

Remember when the talking heads on television told us that because of the tariffs President Trump had placed on China, the cost of imports would go up. Well, they misread the tea leaves again.

The Gateway Pundit posted the following from the Bureau of Labor Statistics:

Prices for U.S. imports declined 0.3 percent in May, the U.S. Bureau of Labor Statistics reported today, following an increase of 0.1 percent the previous month. Lower fuel and nonfuel prices contributed to the May decline in import prices. U.S. export prices fell 0.2 percent in May, after advancing 0.1 percent in April, 0.8 percent in March, and 0.6 percent in February.

Imports

U.S. Import prices fell 0.3 percent in May, the first monthly decline since a 1.4-percent drop in December. Import prices advanced 1.8 percent from December to April before the downturn in May. The price index for overall imports decreased 1.5 percent over the past 12 months, matching the drop in January. These were the largest over-the-year declines since the index fell 2.2 percent in August 2016.

Fuel Imports: Import fuel prices declined 1.0 percent in May, after rising 25.4 percent over the previous 4 months. Lower prices for both petroleum and natural gas contributed to the May decline. Petroleum prices fell 0.9 percent in May, after a 4.7-percent advance in April. The May decrease was the first monthly decline since a 15.3-percent drop in December. Natural gas prices fell 6.8 percent in May following a 51.1-percent decline the previous month. Overall fuel prices decreased 1.1 percent over the past year. The decline was driven by a 1.9-percent drop in petroleum prices which more than offset a 2.5-percent rise in natural gas prices.

The Gateway Pundit article concludes:

The lower costs on fuel allowed the overall import costs to go down for the month.  This is in the face of tariffs the Trump Administration put on China as a result of inaction from the Chinese in coming together on a trade agreement with the US.

Despite what all the liberal naysayers said about increasing tariffs costing Americans millions, the costs of imports are actually down.

Overall the US economy is in very solid shape –

The experts seem to be having a very difficult time getting things right under the Trump administration.