Over the last year, there has been plenty of commentary about the spike in gas prices, now CNN has an interesting take on the dip in prices.
In June, the average price for a gallon of gas hit $5, but since prices have dropped. As of Friday morning, AAA reports that the average price for a gallon of gas is $3.91.
And according to CNN, Americans should take that dip in gas prices and view it as a tax cut — or even a “$100-a-month raise” — not a joke.
An analysis article published by CNN Business on Friday bears the headline, “America just got a $100-a-month raise.”
“Next time you stop at a gas station, think of it as a $100-a-month tax cut. Or a maybe $100-a-month raise,” it reads. “The steady drop in gas prices over the last few months has turned into an unexpected form of economic stimulus, coming at a time when the Federal Reserve is trying to cool the economy and battle rising prices with higher interest rates.”
Next time you stop at a gas station, think of it as a $100-a-month tax cut. Or a maybe $100-a-month raise. https://t.co/7FOuCRfrJt
— CNN (@CNN) August 19, 2022
Mark Zandi, the chief economist for Moody’s Analytics, told CNN that the decrease in prices “equals about $125 billion a year in savings for US households, or more than $10 billion a month,” as the outlet writes.
“And that’s just a direct benefit. Lower diesel prices bring down the cost of transportation for all goods, including food,” Zandi said.
The notion that the lower gas prices might be seen as a “raise” did not go over well on Twitter.
Patrick De Haan, an analyst at Gas Buddy, tweeted, “Or a $36.50/mo pay cut from a year ago, when prices were 73 cents lower.”
or a $36.50/mo pay cut from a year ago, when prices were 73 cents lower… https://t.co/kfaNIgi5RR
— Patrick De Haan ⛽️📊 (@GasBuddyGuy) August 19, 2022
Check out some of the reactions below:
This would make Stalin blush. https://t.co/YPYn06VnFb
— Drew Holden (@DrewHolden360) August 19, 2022
I took $300 from you. But I gave $100 back. Kneel at my greatness and be thankful! https://t.co/Y02iyGcLJm
— Andrew Martonik (@andrewmartonik) August 19, 2022
$100 is peanuts to regular Americans. Stop covering for the Biden administration’s failed energy policies. https://t.co/SMbbtsJn1V
— Gabriella Hoffman (@Gabby_Hoffman) August 19, 2022
This is North Korean level nonsense.
— Matt Whitlock (@mattdizwhitlock) August 19, 2022
It’s like getting a huge pay cut, then getting a slight pay bump (but still well under what you were making before) and being told to be grateful. https://t.co/1kD4NWCtrH
We cut your salary by $300-a-month. Now we gave you a $100-a-month raise.
— Steve Krakauer (@SteveKrak) August 19, 2022
Why aren't you happy? https://t.co/mNfoHe7x1f
https://twitter.com/charlescwcooke/status/1560631688325001218
Or, think of it as gas still being more than 60% more expensive than it was when Biden became president.
— Doug Heye (@DougHeye) August 19, 2022
This piece, geez. Written by the DNC? https://t.co/6YyVoJZ1GR
Analysis: you're still paying ~$1.50 more now for gas than you were in January 2021 before this President took office. Think of it as this administration taking $75 a month from your paycheck. https://t.co/YrMWF0hfL3
— Kyle Lamb (@kylamb8) August 19, 2022
Or a $400 tax increase from the Trump years.
— Pradheep J. Shanker, M.D. (@neoavatara) August 19, 2022
Fun with numbers! https://t.co/XKAKPqzHAF
Chris Licht, you've got a LOT more firings to make if you want CNN to be a real news organization. https://t.co/mkZmIHzMCI
— Curtis Houck (@CurtisHouck) August 19, 2022
https://twitter.com/thejcoop/status/1560624506032779264
Yes, gas prices are down from June. It’s worth pointing out that the higher gas prices led people to change their driving habits, and drive less, to save money. And that the lower demand is likely playing some role in the decrease.
But they’re still higher than a year ago — not to mention that inflation in July stayed near a 40-year-high — and you can’t call that a “raise” or a “tax cut” when Americans are still spending more on gas.
If gas prices dip to at least the price they were when President Joe Biden took office, then maybe we can start talking about lower prices being a “raise.”