Oh boy, so i need two minutes of your time and i need you to really listen, because this is super super important president biden's recent proposal, removing the federal gas tax to ease up the gasoline prices. So you have to pay as much at the gas pump. May sound, like a good idea, may sound like it's going to help you, but i assure you it will not now look. Obviously everybody understands that this is what you would call politics driven, economical decisions.
If the government is now basically suggesting to give you more money, it obviously has something to do with the midterms and biden's own kind of lackluster performance in the polls, et cetera, et cetera, et cetera. But that's not the point of this video. The easiest thing for me would be to make a video saying: hey: this is just economics, politics that that part, you know - and you know if it gives you money in your pocket and you're, going to be doing better because of economics driven politics, so be it, But look i'm here to explain to you that this proposal is actually going to hurt you and i know that may sound completely weird and kind of counterintuitive how the is just proposing to remove tax. So i can get cheaper gasoline.
That's good! Well, look what we have here right now is the situation that inflation is hitting. Everybody and inflation is hitting hard on gasoline prices. That point you know, and inflation is not a partisan problem. It's not a democrat problem, it's not a republican problem.
It's just a problem that has to do with the printing of money, and we kind of you know it's a self-induced injury, but we're already there so now. The question is: how do you solve gasoline prices now? Gasoline prices is something that has to do with the global supply of gasoline the global demand of gasoline and all that good stuff. Now here's the thing: what you're now suggesting, if you're president biden, is to solve inflation by giving people more money, follow this for a second president biden is suggesting to solve inflation. Basically, so you don't have to pay more money at the gas pump by giving you more money, essentially removing tax.
Now, in what world tell me anybody, even if you like biden, if you hate, but i don't care for me, this is not a political video in which world is giving more money, is a solution to inflation. I just want to remind you for those of you who don't follow this channel, that giving people more money is what cause inflation to begin with. So essentially, the proposal is, let's put more gasoline on this fire, so we can put it out now. Look the reason behind this is quite simple: the technical reason i can show you in a minute.
Let me explain so right now: the government is collecting tax, it collecting tax out of the gasoline you're buying at the gas pump and it sucks to pay tax. I know, but here's the thing now the government is saying well look. We want to give you more money, but we don't want you to pay for that. So we're going to give you free money by removing taxes. That's good right vote for us. The problem is that the government just reduced its income from taxation for how long this removal will stand. So, for this temporary time the government income from tax, the government's collection from tax will go down if the government's income from tax goes down and the expenses of the government do not change, and i do not expect them to change. Government spending is not going to go down significantly because of this, or in parallel to this.
So if the government spends just as much money, but now it has less money coming in from the tax man. Where is this difference going to come from? It's not like the god mother fairy is going to come in and sprinkle inflation dust all over it. This money has to come from somewhere if you're not getting it from the tax. Where are you going to get it from? Well, you have to print more money.
You have to print more money, you just made inflation worse. So that's a technical kind of explanation of why reducing taxes to fight inflation is a bad idea. The solution should be reduce government spending print less money, but that doesn't sell as well for politics as simple as that now look. It's been five minutes.
I said it's gon na be two or three i'm sorry, but i had to explain this to you. Don't let these fool you and remember. This is not about politics. It's not left right.
Democrat republican. All of them are throwing these smoke screens to confuse you keep your eye on the ball. Remember the truth.
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where the coffee is hot and so is the chat
Yes, but this tax removal should promote growth of the economy and keep many jobs in the transport industry. So I think it's actually good. We will see, sooner rather than later, though.
So Tom, how does it feel having to explain a simpel, economic truth to the world? What does it say about the average voter, that the ruling party, voted into power by those voters, thinks a proposal like this will win the elections?
In what world Tom? Clown World.
The potato world lol
Hey tom thanks for the vids! When does money talk come back!
They create disasters then show themselves as heroes pretending to fix them.
Nowadays, with the inflation as it goes, the government collects via taxes much more money than a normal year. So perhaps, the government dicedes to take less money from the gasoline, witch hits hard to the economies of the people with less resources, for helping them to carry on.
Biggest inflation buster, Tesla robo taxis going live. 2million electric robo taxi's replaces approx 20 million ICE car vehicles due the higher utilisation rate per vehicle. In the shorter term high mileage/hour drivers should be given priority/incentives to buying EVs.
Average consumer in US will only save 9$ per month if fuel tax eradicted
Yup, good call Tom.
The average person will only save $25
Tom is the man….🏆👍
I agree…giving mother fuckers money won't solve it…but giving it to the father fuckers will 🤑
Instead of sending 10s of billions of dollars to Ukraine for a war we supposedly want no part of why not sign an executive order giving families that make less than a certain amount of money a prepaid gas credit card for a few hundred bucks….
You know when Tom is in the car Truth Bombs are not far away
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Make love Joe Biden!👍
Is there any way i can watch the podcast, the new channel show no videos
Biden – another hand out – to solve inflation?! Huh?
Pumping money into the economy debases the money.. every nation in history that has done this and then tried to solve the problem by giving away stuff (hence debasing you money more) has eventually collapsed..a bit more complicated but that is about The simplicity of it
Your takes are usually pretty good, but with the problem of inflation, they're getting worse.
I agree that a gas tax holiday makes no sense, but AGAIN, inflation didn't happen because of printing money (which is code for "giving poor people tax-funded handouts"). Prices are increasing because the petroleum industry sees the end of their gravy train and is pushing profits at the cost of killing their customers.
This economy is the result of unchecked oligopolies, not because the average person got a tax break.
I disagree with your analysis. The suspension of the gas tax for a few months is an indication that Biden feels our pain and is making some effort, however marginal, to address it. In the scheme of the federal budget, it doesn't make a significant impact on the deficit. I suspect that rather than causing the printing of more money, the lost revenue, which is normally used to maintain our roads, will result in deferred maintenance of our roads.If that is just for a few months, I don't think road maintenance will suffer significantly. Suspending the tax will lower the price slightly. It is more of a symbolic gesture than a remedy. Gasoline prices will remain high and so there will be a disincentive to drive for non-essential trips. The old saying goes that the best cure for high oil prices is high oil prices.
Think you are wrong here and that the government will takeout debt to pay for the spending they would pay from income from the gas tax.
I agree with you this is short sighted but it's also not the only thing he proposed so at least it's part of a larger plan which potentially includes increasing supply through additional refining. Even together I doubt it's enough but at least he is proposing something. Let's be real that Biden is in a no win situation. He has limited control over the situation but will get the blame regardless if he does something or nothing.
Tom Nash is eventually going to be the Dad of YouTube finance. Sitting you down on his knee to tell you about the birds, and the bee’s (stocks, and bonds) and breaking up playground fights between younger finance YouTubers.