Bezos, who is the founder and CEO of Amazon, wrote on Twitter, "Ouch. Inflation is far too important a problem for the White House to keep making statements like this. It's either straight ahead misdirection or a deep misunderstanding of basic market dynamics."
Bezos issued the tweet in response to a tweet from Biden which read, "My message to the companies running gas stations and setting prices at the pump is simple: this is a time of war and global peril. Bring down the price you are charging at the pump to reflect the cost you're paying for the product. And do it now."
Biden has noted that Americans should expect to pay higher prices at the gas pump for "as long as it takes, so Russia cannot, in fact, defeat Ukraine and move beyond Ukraine."
On Fox News Sunday, National Security Council coordinator for strategic communications John Kirby defended Biden against Bezos, saying, "I think we obviously take great exception at the idea that this is somehow misdirection. The President is speaking honestly with the American people about what he's trying to do to bring the price down."
Kirby noted that Biden "was honest, even before the invasion, like, about the fact that it would not be cost free, certainly not cost free to President Putin, but it wouldn't be cost free to the American people to stand up for democracy, to stand up for Ukraine's ability to defend itself."
White House Press Secretary Karine Jean-Pierre also came to Biden's aid, condemning Bezos' tweet by noting that while the price of oil has fallen, gas prices have not fallen alongside it.
While Biden and his administration have frequently blamed the increase in prices for gasoline and other items on "Putin's Price Hike," the supply chain and inflation woes of the country began long before Russian President Vladimir Putin invaded Ukraine in February.
The price of gas and diesel you pay at the pump is mostly set by the price of oil, and that price is mostly set in the global market. Consider for instance the benchmark for global prices is Brent crude and the benchmark for for the US domestic market is WTI. Notice they are never more than a $10 spread between them. If Brent goes up so does WTI, but stays a few dollars short of Brent. At present it is WTI = $109 and Brent $112, only a $3 spread this time.
As a person myself who is apolitical, I have no political ideology except that I just don't like ANY politicians. I hate ALL government and I hate ALL politicians. I am essentially anti-government. But Bezo's is just being political in his assessment here. But then again, he didn't get along with Trump all that much either. While Biden's recent regulatory changes would affect gas prices later, most would not affect them now. Such as shutting Keystone XL down and denying offshore permits and some onshore drilling permits. These projects would take years to develop and thus produce. 7 countries have tapped their SPR's since Biden took office. How did Biden make them tap their SPR's and cause all the inflation in their countries that was moving up long before any Ukraine/Russian war? Is Biden president of the world? While Biden is antagonistic to domestic producers at home, and that's not helping also, he has ZERO control abroad. And remember, the price you pay at the pump is for the most part set in the global market. This is why gas and diesel are up in every single country on planet earth, not just in the US. But hey, lets do the Left/Right dance. Nah, I'll pass.
Notice Bezo's just makes a vague statement without explaining any how or why or giving any details of his definition of "basic market dynamics"? That's a broad term and loosely defined. But Bezo's is wrong if he thinks retailers have no discretionary price powers. Retailers do have some latitude in price setting in the retail market, If Bezo's is correct and I am wrong, then why dont he explain this? Or is this not what Bezo's would consider "basic market dynamics"?