BREAKING: Joe Biden DESTROYED By Insider Report – He’s DONE

Joe Biden is proposing a gas tax holiday.

Even Obama’s team is sure the idea is so absurd that it will never work.

Jason Furman is an economist who served under Barack Obama and now teaches economics at Harvard. He is definitely not some right-wing nut spitting conspiracy theories.

When he speaks out against Biden, you know something is SERIOUSLY wrong.

It isn’t some left vs. right battle that Furman is engaged in though, it’s the fact that a well-known theory of economics proves that Biden’s tac holiday WILL NOT WORK.

It’s called the “standard price incidence theory.”

What it comes down to, is that the government cannot decide which Americans get the benefit of a tax cut because supply and demand is the determining factor.

“Whatever you thought of the merits of a gas tax holiday in February it is a worse idea now. Refineries are even more constrained now so supply is nearly fully inelastic. Most of the 18.4 cent reduction would be pocketed by industry–with maybe a few cents passed on to consumers. This is standard price incidence theory in economics–the government cannot decide who gets the benefits of a tax cut, it gets split between the two parties based on the responsiveness of supply and demand.”

As much as Biden hates the oil companies, why would he do something that would benefit them, and not the average American?

“If supply is not very responsive to price (the situation now) then most of the benefit of the tax cut will go to suppliers. The intuition is that if it was passed onto consumers they would want to consume more than could be produced–driving prices back up. And yes, demand really does respond to prices–which means that consumers are in less of a position to benefit from a gas tax holiday.”

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