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      The Head Spinning Reality of Venezuela’s Economy

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      CARACAS, Venezuela — In the capital, a store sells Prada purses and a 110-inch television for $115,000. Not far away, a Ferrari dealership has opened, while a new restaurant allows well-off diners to enjoy a meal seated atop a giant crane overlooking the city.“When was the last time you did something for the first time?” the restaurant’s host boomed over a microphone to excited customers as they sang along to a Coldplay song.This is not Dubai or Tokyo, but Caracas, the capital of Venezuela, where a socialist revolution once promised equality and an end to the bourgeoisie.Venezuela’s economy imploded nearly a decade ago, prompting a huge outflow of migrants in one of worst crises in modern Latin American history. Now there are signs the country is settling into a new, disorienting normality, with everyday products easily available, poverty starting to lessen — and surprising pockets of wealth arising.That has left the socialist government of the authoritarian President Nicolás Maduro presiding over an improving economy as the opposition is struggling to unite and as the United States has scaled back oil sanctions that helped decimate the country’s finances.A television on sale for over $100,000 at a store in Caracas.A recently opened high-end restaurant in Caracas.Conditions remain dire for a huge portion of the population, and while the hyperinflation that crippled the economy has moderated, prices still triple annually, among the worst rates in the world.But with the government’s ease of restrictions on the use of U.S. dollars to address Venezuela’s economic collapse, business activity is returning to what was once the region’s wealthiest nation.As a result, Venezuela is increasingly a country of haves and have-nots, and one of the world’s most unequal societies, according to Encovi, a respected national poll by the Institute of Economic and Social Research of the Andrés Bello Catholic University in Caracas.Mr. Maduro has boasted that the economy grew by 15 percent last year over the previous year and that tax collections and exports also rose — though some economists stress that the economy’s growth is misleading because it followed years of huge declines.For the first time in seven years, poverty is decreasing: Half of the nation lives in poverty, down from 65 percent in 2021, according to the Encovi poll.A street vendor selling produce at $1 for each bagged vegetable in a busy downtown market in Caracas.After years of a roller-coaster economy, Venezuela has settled into a new, disorienting normality fueled by U.S. dollars.But the survey also found that the wealthiest Venezuelans were 70 times richer than the poorest, putting the country on par with some countries in Africa that have the highest rates of inequality in the world. And access to U.S. dollars is often limited to people with ties to the government or those involved in illicit businesses. A study last year by Transparency International, an anti-corruption watchdog, found that illegal businesses such as food, diesel, human and gas smuggling represented more than 20 percent of the Venezuelan economy.Though parts of Caracas bustle with residents who can afford a growing array of imported goods, one in three children across Venezuela was suffering from malnutrition as of May 2022, according to the National Academy of Medicine.Up to seven million Venezuelans have simply given up and abandoned their homeland since 2015, according to the United Nations.And despite the Maduro administration’s new slogan — “Venezuela is fixed” — many scrape by on the equivalent of only a few dollars a day, while public-sector employees have taken to the streets to protest low salaries.“I have to do back flips,” said María Rodríguez, 34, a medical lab analyst in Cumaná, a small city 250 miles east of the capital, explaining that, to pay for food and her daughter’s school tuition, she relied on two jobs, a side business selling beauty products and money from her relatives.Yrelys Jiménez, a preschool teacher in San Diego de los Altos, a half-hour drive south of Caracas, joked that her $10 monthly salary meant “food for today and hunger for tomorrow.” (The restaurant that allows diners to eat 150 feet above the ground charges $140 a meal.)Yrelys Jiménez with her son and daughter in their shared bedroom.Ms. Jiménez during the long walk home with her children from her job as a teacher.Despite such hardship, Mr. Maduro, whose administration did not respond to requests for comment, has focused on promoting the country’s rising economic indicators.“It seems that the sick person recovers, stops, walks and runs,” he said in a recent speech, comparing Venezuela with a suddenly cured hospital patient.The United States’ shifting strategy toward Venezuela has in part benefited his administration.In November, after the Maduro administration agreed to restart talks with the opposition, the Biden administration issued Chevron an extendable six-month license to pump oil in Venezuela. The deal stipulates that the profits be used to pay off debts owed to Chevron by the Venezuelan government.And while the United States still bans purchases from the state oil company, the country has increased black-market oil sales to China through Iran, energy experts said.A ceiling of floating sculptures in a luxury department store in Caracas.The Venezuelan government’s easing of restrictions on dollars has made it easier for some people to use money sent from abroad.Mr. Maduro is also emerging from isolation in Latin America as a regional shift to the left has led to a thaw in relations. Colombia and Brazil, both led by recently elected leftist leaders, have restored diplomatic relations. Colombia’s new president, Gustavo Petro, has been particularly warm to Mr. Maduro, meeting with him repeatedly and agreeing to a deal to import Venezuelan gas.With presidential elections planned next year and the opposition’s parallel government having recently disbanded, Mr. Maduro seems increasingly confident about his political future.Last year’s inflation rate of 234 percent ranks Venezuela second in the world, behind Sudan, but it pales in comparison to the hyperinflation seen in 2019, when the rate ballooned to 300,000 percent, according to the World Bank.With production and prices up, Venezuela has also started to see an increase in revenues from oil, its key export. The country’s production of nearly 700,000 barrels a day is higher than last year’s, though it was twice as high in 2018 and four times as high in 2013, said Francisco J. Monaldi, a Latin America energy policy fellow at Rice University.The Venezuelan government’s loosening of restrictions on dollars has made it easier for some people to use money sent from abroad. In many cases, no cash is actually exchanged. Venezuelans with means increasingly use digital apps like Zelle to use dollars in accounts outside the country to pay for goods and services.Friends celebrating a birthday at a trendy restaurant in Caracas.A survey found that the wealthiest Venezuelans were 70 times richer than the poorest residents.Still, U.S. officials call Venezuela’s economic picture somewhat illusory.“They were able to adjust to a lot of their problems after sanctions were implemented through dollarization,” according to Mark A. Wells, a deputy assistant secretary of state, “and so it starts to look over time that they are able to reach a status that basically helps the elites there, but the poor are still very, very poor.’’“So, it’s not that everything is more stable and better there,” Mr. Wells added.Mr. Maduro took office nearly 10 years ago and was last elected in 2018 in a vote that was widely considered a sham and was disavowed by much of the international community.The widespread belief that Mr. Maduro won fraudulently led the National Assembly to deem the presidency vacant and use a provision in the Constitution to name a new leader, Juan Guaidó, a former student leader. He was recognized by dozens of countries, including the United States, as Venezuela’s legitimate ruler.But as the figurehead of a parallel government that had oversight over frozen international financial accounts, he had no power within the country.Juan Guaidó led a parallel government that was recognized by the United States but held no power.Scavenging a large garbage bin at a street market in Caracas. Half of the nation lives in poverty, down from 65 percent in 2021.In December, the National Assembly ousted Mr. Guaidó and scrapped the interim government, a move some observers considered a boost to Mr. Maduro. A number of opposition figures have announced that they will run in a primary scheduled for October, even though many political analysts are skeptical that Mr. Maduro will allow a credible vote.“What Maduro does have today is an opposition that is disjointed and dispersed,” Mr. Guaidó said in an interview. “He also has a majority of the people against him. He continues being a dictator without popular support, a destroyed economy, which was his own fault, with professors, nurses, older people and workers protesting right now as we speak.”Even people like Eugenia Monsalves, who owns a medical supply company in Caracas and sends her two daughters to private schools, is frustrated with the country’s direction.Though she is upper middle class, she said she still had to watch how she spends her money.She goes out to eat occasionally and has visited some of the city’s new luxury stores, but without buying anything.“The vast majority of Venezuelans live in a complicated situation, very complicated,” she said.Ms. Monsalves believes the Maduro administration needs to go, but she worries that the best candidates were forced into exile or disqualified. The opposition, she said, has not coalesced around what it most needs: a leader who can energize the electorate.“That’s what I most want, like many other Venezuelans,” she said. “But the truth is that without a clear vision from the opposition, a clear platform from a single candidate, I think it’s going to be hard.”An upscale restaurant built inside a recently renovated hotel in Caracas.Nayrobis Rodríguez contributed reporting from Sucre, Venezuela, and More

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      Ferrari, Prada y hambre en Venezuela

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      CARACAS, Venezuela — En la capital, una tienda vende bolsos de Prada y un televisor de 110 pulgadas por 115.000 dólares. No muy lejos, un concesionario de Ferrari ha abierto, y un nuevo restaurante permite que los comensales acomodados disfruten de una comida sentados encima de una grúa gigantesca con vistas a la ciudad.“¿Cuándo fue la última vez que hicieron algo por primera vez?”, gritaba por el micrófono el anfitrión del restaurante a los clientes emocionados, mientras cantaban una canción de Coldplay.Esto no es Dubái ni Tokio, sino Caracas, la capital de Venezuela, donde una revolución socialista prometió igualdad y el fin de la burguesía.La economía de Venezuela colapsó hace casi una década, lo que provocó un enorme flujo de emigrantes en una de las peores crisis de la historia moderna de América Latina. Ahora hay indicios de que el país se está asentando en una nueva y rara normalidad, con productos cotidianos fácilmente disponibles, una pobreza que empieza a disminuir y asombrosas áreas de opulencia.Esto ha dejado al gobierno socialista del presidente autoritario de Venezuela, Nicolás Maduro, liderando un país en el que la economía está mejorando, la oposición batalla por unirse y Estados Unidos ha comenzado a reducir las sanciones petroleras que habían contribuído a obstaculizar las finanzas.Un televisor en venta a un precio superior a 100.000 dólares en una tienda de CaracasUn restaurante costoso que abrió recientemente en Caracas.Las condiciones siguen siendo terribles para una gran parte de la población, y aunque la hiperinflación que paralizó la economía se ha moderado, los precios siguen triplicándose anualmente, una de las peores tasas del mundo.Pero con la relajación por parte del gobierno de las restricciones al uso de dólares estadounidenses para hacer frente al colapso económico de Venezuela, la actividad empresarial está volviendo al que fue el país más rico de la región.Como resultado, Venezuela es cada vez más un país de ricos y pobres, y una de las sociedades más desiguales del mundo, según Encovi, una respetada encuesta nacional realizada por el Instituto de Investigaciones Económicas y Sociales de la Universidad Católica Andrés Bello.Maduro se ha jactado de que la economía creció un 15 por ciento el año pasado, con respecto al anterior, y de que la recaudación de impuestos y las exportaciones también aumentaron, aunque algunos economistas subrayan que el crecimiento de la economía es engañoso porque se produjo tras años de enormes caídas.Por primera vez en siete años, la pobreza está disminuyendo: la mitad del país vive en la pobreza, frente al 65 por ciento en 2021, según la encuesta de Encovi.Un puesto vende verduras a un dólar por pieza en bolsa en un mercado ajetreado en el centro de Caracas.Luego de años de un subibaja económico, Venezuela se ha instalado en una nueva y desconcertante normalidad impulsada por los dólares estadounidenses.Pero la encuesta también reveló que los venezolanos más ricos eran 70 veces más ricos que los más pobres, lo que pone al país a la par con algunos países de África que tienen las tasas más altas de desigualdad en el mundo.Y el acceso a los dólares estadounidenses está limitado a personas con vínculos al gobierno o a quienes están involucrados en negocios ilícitos. Un estudio del año pasado de Transparencia Internacional, una organización anticorrupción, halló que negocios ilegales como el contrabando de comida, gasolina, personas y gas representaban más del 20 por ciento de la economía venezolana.Aunque algunas zonas de Caracas están llenas de residentes que pueden adquirir una creciente variedad de productos importados, uno de cada tres niños en toda Venezuela sufría desnutrición en mayo de 2022, según la Academia Nacional de Medicina.Alrededor de siete millones de personas se han dado por vencidas y han huido de su patria desde 2015, según las Naciones Unidas.A pesar del nuevo mensaje del gobierno de Maduro —“Venezuela se arregló”—, muchos sobreviven con el equivalente a solo unos pocos dólares al día, y los empleados del sector público han salido a la calle para protestar por los bajos salarios.“Tengo que hacer maromas”, dijo María Rodríguez, de 34 años, analista de laboratorio médico en Cumaná, una pequeña ciudad ubicada a 400 kilómetros al este de la capital. Rodríguez dice que, para pagar la comida y la matrícula escolar de su hija, dependía de dos trabajos, un negocio paralelo de venta de productos de belleza y el dinero de sus familiares.Yrelys Jiménez, profesora de preescolar con estudios universitarios en San Diego de los Altos, una localidad ubicada a media hora en coche al sur de Caracas, bromeaba diciendo que su salario mensual de 10 dólares significaba “pan para hoy y hambre para mañana”. (El restaurante que permite que los comensales coman a 45 metros sobre el suelo cobra 140 dólares por comida).Yrelys Jiménez con sus hijos en la habitación que comparten.Jiménez en su larga caminata a casa con sus hijos, al volver de su trabajo como maestra.A pesar de estas penurias, Maduro, cuyo gobierno no respondió a las solicitudes de comentarios, se ha centrado en promover los crecientes indicadores económicos del país.“Parece que el enfermo se recupera, se para, camina y corre”, dijo Maduro en un discurso reciente, comparando a Venezuela con un paciente de hospital que se cura repentinamente.El cambio de estrategia de Estados Unidos hacia Venezuela ha beneficiado en parte a su gobierno.En noviembre, después de que el gobierno de Maduro accediera a reanudar las conversaciones con la oposición, el gobierno de Biden concedió a Chevron una licencia de seis meses, prorrogable, para extraer petróleo en Venezuela. El acuerdo estipula que los beneficios se utilicen para pagar las deudas que el gobierno venezolano tiene con Chevron.Y, mientras Estados Unidos sigue prohibiendo las compras a la petrolera estatal, el país ha aumentado las ventas de petróleo en el mercado negro a China a través de Irán, según los expertos en energía.Esculturas flotantes en una tienda departamental de lujo en CaracasLa flexibilización de las restricciones sobre los dólares por parte del gobierno venezolano ha facilitado que algunas personas gasten el dinero enviado desde el extranjero.Maduro también está saliendo del aislamiento de sus vecinos latinoamericanos porque un giro regional hacia la izquierda ha provocado el deshielo de las relaciones. Colombia y Brasil, ambos dirigidos por líderes de izquierda recientemente elegidos, han restablecido las relaciones diplomáticas. El nuevo presidente de Colombia, Gustavo Petro, ha sido particularmente cálido con Maduro, reuniéndose con él en repetidas ocasiones y acordando un acuerdo para importar gas venezolano.Con las elecciones presidenciales previstas para el próximo año y la reciente disolución del gobierno paralelo de la oposición, Maduro parece cada vez más confiado en su futuro político.La tasa de inflación del año pasado, del 234 por ciento, sitúa a Venezuela en el segundo lugar del mundo, por detrás de Sudán, pero palidece en comparación con la hiperinflación registrada en 2019, cuando la tasa se disparó hasta el 300.000 por ciento, según el Banco Mundial.Con la producción y los precios del crudo al alza, Venezuela también ha empezado a experimentar un aumento de los ingresos procedentes del petróleo, su exportación clave. La producción del país, de casi 700.000 barriles al día, es superior a la del año pasado, aunque fue dos veces mayor en 2018 y cuatro veces mayor en 2013, dijo Francisco J. Monaldi, investigador de política energética de América Latina en la Universidad Rice.La flexibilización por parte del gobierno venezolano de las restricciones sobre los dólares ha facilitado que algunas personas puedan usar el dinero enviado desde el extranjero. En muchos casos, no se intercambia dinero en efectivo. Los venezolanos con medios utilizan cada vez más aplicaciones digitales como Zelle para usar dólares en cuentas del extranjero para pagar bienes y servicios.Amigas celebran un cumpleaños en un restaurante de moda en Caracas.Una encuesta halló que los venezolanos más adinerados eran 70 veces más ricos que los más pobres.Aun así, los funcionarios estadounidenses califican el panorama económico de Venezuela de ilusorio de alguna manera.“Fueron capaces de ajustarse a muchos de sus problemas tras la aplicación de las sanciones a través de la dolarización”, según Mark A. Wells, subsecretario de Estado adjunto, “por lo que con el tiempo empieza a parecer que son capaces de alcanzar un estatus que básicamente ayuda a las élites de allí, pero los pobres siguen siendo muy, muy pobres”.“Por lo tanto, no es que todo sea más estable y mejor ahí”, agregó Wells.Maduro asumió el cargo hace casi 10 años y fue reelegido en 2018 en unos comicios ampliamente considerados como una farsa y que fueron repudiados por gran parte de la comunidad internacional.La creencia generalizada de que Maduro ganó fraudulentamente llevó a la Asamblea Nacional elegida democráticamente a declarar vacante la presidencia en 2019 y utilizar una disposición de la Constitución para nombrar a un nuevo líder, Juan Guaidó, un exdirigente estudiantil. Fue reconocido por decenas de países, incluido Estados Unidos, como gobernante legítimo de Venezuela.Pero como figura principal de un gobierno paralelo que supervisaba las cuentas financieras internacionales congeladas, carecía de poder dentro del país.Juan Guaidó lideró un gobierno reconocido por Estados Unidos pero que no tenía poder dentro del país.Rebuscando en un gran contenedor de basura en un mercado callejero de Caracas. La mitad del país vive en la pobreza, menos que el 65 por ciento que vivía en esa situación en 2021.En diciembre, la Asamblea Nacional destituyó a Guaidó y eliminó el gobierno interino, una medida que algunos observadores consideraron como un impulso a Maduro. Varias figuras de la oposición han anunciado que se presentarán a las primarias previstas para finales de octubre, a pesar de que muchos analistas políticos son escépticos de que Maduro permita una votación creíble.“Lo que Maduro tiene hoy es una oposición desarticulada y dispersa”, dijo Guaidó en una entrevista telefónica. “También tiene a la mayoría del pueblo en su contra. Sigue siendo un dictador sin apoyo popular, una economía destruida por su propia culpa, con profesores, enfermeras, ancianos y trabajadores protestando ahora mismo mientras hablamos”.Incluso gente como Eugenia Monsalves, propietaria de una empresa de suministros médicos en Caracas y que envía a sus dos hijas a colegios privados, está frustrada con el rumbo del país.Aunque es de clase media alta, dice que tiene que cuidar cómo gasta su dinero.Sale a comer de vez en cuando y ha visitado algunas de las nuevas tiendas de lujo de la ciudad, pero sin comprar nada.“La gran mayoría de los venezolanos viven una situación complicada, muy complicada”, dijo.Monsalves cree que el gobierno de Maduro debe irse, pero le preocupa que los mejores candidatos hayan sido forzados al exilio o descalificados. La oposición, dijo, no se ha unido en torno a lo que más necesita: un líder que pueda energizar al electorado.“Eso es lo que yo más quisiera, así como muchísimos otros venezolanos”, dijo. “Pero la verdad es que de esta manera, y sin un panorama claro de la oposición, una propuesta clara de un candidato, lo veo muy difícil”.Un restaurante de lujo en un hotel recién remodelado en Caracas.Nayrobis Rodríguez colaboró con reporteo desde Sucre, Venezuela, y More

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      Tucker Carlson Is No Less Dangerous

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      Gail Collins: Bret, we have all kinds of deeply important issues to tackle. But let’s start with Tucker Carlson. We’ve learned he didn’t really believe all the stuff he said on TV about a “stolen” election. Shocking!Bret Stephens: They say that hypocrisy is the homage that vice pays to virtue, but in this case it’s the tribute that cynicism pays to cowardice.Gail: Since you’re in charge of that side of our world, I really want to hear your opinion.Bret: I sometimes think of Carlson in the same mold as Father Coughlin, but worse: At least Coughlin was an honest-to-God fascist, a sincere bigot, whereas Carlson only plays one on TV for the sake of ratings.Gail: Wow, been a while since I heard a Father Coughlin comparison.Bret: As for Fox, the way in which they are trying to “respect” their viewers is to lie to them. I can only wish Dominion Voting Systems well in its $1.6 billion lawsuit against the network for claiming that their voting machines played a role in Trump’s loss. I believe in strong protections against frivolous lawsuits, but knowingly and recklessly spreading falsehoods about the subject of one’s reporting is the very definition of — dare I say it — fake news.Gail: Glad we can come together on the importance of not making up the news.Bret: But Gail, let’s move on to weightier things. Like President Biden’s dead-on-arrival $6.8 trillion budget. Your thoughts?Gail: Yippee! Whenever I wonder if we’re ever going to have a serious fight again, government spending rears its head.So let’s have at it. Obviously, Biden knows his plans aren’t going anywhere with a Republican-sort-of-controlled House. But he’s laying his cards down, and I think the cards look great.Bret: Explain.Gail: He’s ready to raise taxes on the rich. Good for him! Right now the Republicans seem to be claiming we can keep taxes as they are, or lower, plus protect Social Security and Medicare, plus protect or increase military spending. Which would, I believe, cut the rest of the budget by 70 percent.Bret: To steal a line from “Pride and Prejudice,” “My feelings are so different. In fact, they are quite the opposite.”Gail: Love that you’re bringing up Jane. Even if it’s to disagree with me.Bret: Ten years ago, federal spending was $3.45 trillion. Biden’s budget request is double that, and he has the chutzpah to suggest he wants to reduce the deficit — achieved almost entirely by huge tax increases instead of spending discipline.Gail: I will refrain from referring at length to a super-deficit-exploder named Donald Trump. Who was very much with his party’s program in one sense — pretending to be anti-deficit without proposing anything difficult to reduce it. Of course, the gang is OK with cutting back on, say, child care. Which makes it tougher for single parents to go to work and create a better future for the whole family.Bret: I too will refrain from noting that, godawful as Trump was, his final pre-Covid 2019 budget request was around $4.75 trillion, which is still $2 trillion less than Biden’s current request. I’m also not too thrilled by Biden’s proposal for higher taxes, including a nakedly unconstitutional tax on the appreciated assets of very rich people. It won’t pass, which I guess is the point, since the budget is less of a serious proposal and more of a campaign platform.Speaking of platforms: Your thoughts on the administration’s reported decision to approve an $8 billion oil-drilling project in the Alaskan wilderness?Gail: I’m horrified, actually. We’re supposed to be worrying about global warming and Biden is approving a plan that, as our story pointed out, will have an effect equivalent to adding almost two million more cars a year on the roads.Bret: OK, so now it’s my turn to cheer Biden while you jeer. We’re going to need oil for decades to come no matter how many electric vehicles we build, and the oil has to come from somewhere. Europe has discovered the price of relying on Russia for its energy, and I’d much rather have our gas come from a remote corner of Alaska, extracted by American workers, under American regulations, than from, say, Venezuela or Iran.But I’m really curious to see how this will play out within the Democratic Party. To me it looks like a crucial test of whether the party will again reach out to its old blue-collar manufacturing base or move further into the orbit of knowledge-industry workers with, well, coastal values. What do you think?Gail: The Biden administration is obviously going along with labor, lower-cost energy and all the other stuff you think of when you’re running for re-election. Democrats who worry about the environment may be rightfully horrified, but I doubt it’ll cost Biden votes. When the elections roll around, they’ll realize the other side is worse.Bret: Smart political advice.Gail: Still, the least the oil-drilling forces could do would be to apologize in advance to the kids who are currently in kindergarten and will have to live with the results.Bret: Also known as jobs and energy security.Gail: Hey, talking about youth reminds me of … oldth. I was so sorry to hear Mitch McConnell had fallen and been hospitalized with a concussion. He’s 81 and you can’t help wondering if he’s coming to the end of his career as the Senate Republican leader. Any predictions?Bret: First of all, we’ve got to petition the O.E.D. to make “oldth” a word as the appropriate antonym of youth. Second, I wish the senator a speedy recovery.His bigger problems, though, aren’t his physical stumbles but his political ones. He let Biden score his unexpected political wins last year. He’s fallen between two stools when it came to Trump: not Trumpy enough for Trump and his crowd, but not brave enough to stand up to them and move the party past them — like when he lambasted Trump after Jan. 6 but refused to vote to convict him during his second impeachment trial. And he’s been the Republican Senate leader forever, or at least it feels that way.Gail: So who’s next?Bret: He’d probably be wise to step aside for his whip, South Dakota’s John Thune, except that the Trumpians hate Thune for his anti-denialist position when it came to the 2020 election.Gail: Well, if you want to see the kind of leader that can crawl between the regular Republicans and the Trumpians, there’s … Kevin McCarthy. Senators would be better off with a hospitalized McConnell.Bret: A very good point. Since we’re speaking of Trump, your thoughts on his potential indictment?Gail: So many to choose from! Are we talking about the secret government documents he piled up at Mar-a-Lago, or his attempt to interfere with Georgia’s 2020 ballot counting, or the hush money paid to Stormy Daniels, the ex-lover Trump wanted to keep quiet? Although possibly as much about his sexual ineptitude as his marital sins? Pick one, Bret.Bret: My general view with most of these legal efforts is that, merited though they may be, they are more likely to help Trump than to hurt him. The weakest case seems to be the one that may be closest to an actual indictment — the alleged hush money payments to the alleged paramour Stormy Daniels. Problem there is that the star witness, the former Trump lawyer Michael Cohen, is an ex-felon with a big-time ax to grind against his former boss.Gail: Well, when your witnesses have to be people who spent a lot of quality time with Donald Trump, the options will almost always be depressing.Bret: The stronger case is the one in Georgia. Then again, is a jury in Georgia going to vote unanimously to convict the former president? Color me skeptical. At this point, the most realistic way for the country to be done with Trump is if Ron DeSantis or some other Republican defeats him, fair and square, in the race for the G.O.P. nomination. Which is why you’re strongly rooting for DeSantis to jump in the race, am I right?Gail: Oh, Bret, it’s so hard to admit I’d rather see Trump as the nominee than DeSantis, but it’s true. I would. Rather have a terrible Republican with no real fundamental values than one who has strong but terrible commitments and is a genuine obsessive on social issues like abortion rights.Bret: That sound you just heard was my jaw hitting the floor. But I’m giving you full points for total honesty.Gail: Plus, if we have to live through two years of presidential politics featuring Joe Biden on one side, I’d rather have the awful, wrong-thinking Republican who isn’t also incredibly boring. Is that shallow?Bret: Other than for the entertainment value, do you prefer to have Trump as the nominee because you think he has no chance of winning the election? You could very well be right. Then again, I remember how that worked out in 2016.The Times is committed to publishing a diversity of letters to the editor. We’d like to hear what you think about this or any of our articles. Here are some tips. And here’s our email: letters@nytimes.com.Follow The New York Times Opinion section on Facebook, Twitter (@NYTopinion) and Instagram. More

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      What Exxon Knew, but Concealed, About Climate Change

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      More from our inbox:The U.S. Embassy in IsraelPaying Off Our DebtsWhy Use Real Guns on Movie Sets?Election Deniers Wasting Taxpayer FundsDarren Woods, ExxonMobil’s C.E.O., appeared before the House Oversight Committee via video link in 2021.Jacquelyn Martin/Associated PressTo the Editor:Re “Exxon Scientists Saw Global Warming, as Oil Giant Cast Doubt, Study Says” (Business, Jan. 13):Exxon knew that its fuels would contribute to overheating the planet, yet it chose to deceive the public. It’s the very definition of fraud. Fossil fuel interests and their political allies are carrying out a fraud on humanity. They enjoy massive profits while their products are causing disease, death and disruption around the world.More than eight million people die annually from fossil fuel pollution. Societies are burdened by billions of dollars in damages from climate-fueled heat waves, wildfires, droughts, floods and sea rise.How can we hold them accountable? Many cities and states have filed lawsuits against fossil fuel companies seeking damages.We citizens can demand congressional action to end fossil fuel subsidies, enact carbon pricing to make the polluters pay, subsidize clean energy, speed electrification, reform the permitting process for renewable energy, and sequester carbon through healthier forests and better agricultural practices.Robert TaylorSanta Barbara, Calif.To the Editor:The revelation that Exxon scientists in the 1970s correctly projected the long-term climate impacts of burning fossil fuels, while publicly claiming ignorance, is both unsurprising and infuriating. Rising profits beat rising sea levels every time.Communities on the front lines of the climate crisis have long felt the environmental, economic and health consequences of burning oil, gas and coal. It stands to reason that scientists employed by big polluters would reach the same conclusions.When lead paint and tobacco companies were found to have known the negative health effects of their products, but spent decades concealing them, a public reckoning — with significant monetary damages — followed. It is long past time for the fossil fuel industry to face the same kind of accountability.Zellnor Y. MyrieBrooklynThe writer is a New York State senator for the 20th District.To the Editor:It is indeed unfortunate that Exxon was not forthcoming about its studies and its scientifically accurate projections of global warming. We can use this information to vilify Exxon Mobil, and certainly it deserves criticism, or we can use the information to acknowledge that a great deal of untapped expertise resides in the private energy industry that can be harnessed to address climate change.It would be highly productive if the federal government worked with energy corporations, where so much energy expertise resides, helping them make the socially beneficial decisions that are required to move toward nonpolluting and climate-friendly sources of energy.The government could help fund research and provide economic assistance to construct new infrastructure, which would ease the monetary challenges in transitions.Make the oil and energy industry part of the solution, as opposed to the problem.Ken LefkowitzMedford, N.J.The writer is a former employee of PECO Energy, an electric and gas utility.To the Editor:Thank you for this article, but this is not news. We have known for some time that the oil companies have been deliberately misrepresenting the facts regarding global warming, when they knew better.The Union of Concerned Scientists published “The Climate Deception Dossiers” in 2015. This document is a compilation of evidence that the oil companies knew what greenhouse gases would do to the Earth.In addition, the magazine Scientific American published an article in 2015 that stated that Exxon knew about global warming in 1977.Joseph MilsteinBrookline, Mass.The U.S. Embassy in IsraelThe lot in Jerusalem that is a candidate for a new U.S. embassy.Ofir Berman for The New York TimesTo the Editor:Re “Don’t Build the Jerusalem Embassy Here,” by Rashid Khalidi (Opinion guest essay, Jan. 17):Dr. Khalidi’s view of international law, history and politics demands a response.When the British withdrew from Palestine in 1948, the Jewish organizations had embraced the 1947 U.N. General Assembly resolution recommending partition into predominantly Jewish and Arab states. Arabs rejected the recommendation and attacked. If there was a “nakba” (catastrophe), it was of their making.Second, Israel did not wake up one day and decide to march into East Jerusalem, the West Bank, the Gaza Strip and the Golan Heights. Egypt, Syria and Jordan engaged in armed aggression in 1967 with the stated objective of pushing the Jews into the sea. Israel exercised its inherent right of self-defense under the U.N. Charter.There is not an international right of return law. That argument is an excuse for destroying Israel as a Jewish state.Moving the U.S. embassy to Jerusalem recognized the location of Israel’s capital and sent an important signal to those who advocate the destruction of Israel. Real peace between Israel and the Palestinians will happen when both sides recognize a need to compromise.Nicholas RostowNew YorkThe writer is a former legal adviser to the National Security Council and general counsel and senior policy adviser to the U.S. ambassador to the United Nations.Paying Off Our DebtsThe Treasury Department is using so-called extraordinary measures to allow the federal government to keep paying its bills.Kenny Holston/The New York TimesTo the Editor:Re “U.S. Hits Debt Cap, Heightening Risk of Economic Pain” (front page, Jan. 20):If the debt limit is not raised, then the U.S. will be unable to make payments to some of its creditors, employees and entitlement programs that it is legally obligated to make.How nifty! My wife and I have a mortgage and a car loan. We have decided that our personal debt level is too high. So, we plan to send our bank a letter today saying that we will no longer make our mortgage or car payments.On second thought, scratch that. I know what our bank would say. And it would be right.If we need to reduce our debt as a nation, then — like my wife and me — let’s do it by reducing future spending commitments, not by failing to make current payments that we have already legally committed ourselves to make.Craig DuncanIthaca, N.Y.Why Use Real Guns on Movie Sets?Alec Baldwin on set of the film “Rust” in near Santa Fe, N.M., after the death of the cinematographer Halyna Hutchins in October 2021.Agence France-Presse, via Santa Fe County Sheriff’s OfficeTo the Editor:Re “Baldwin to Face Pair of Charges in Movie Death” (front page, Jan. 20):Why do actors need to use real guns? They use fake props for everything else!If we can send people to the moon and create self-driving cars, you would think that we could create realistic-looking guns, instead of real ones, that actors could use in movies and theaters.If they had done that on the set of “Rust,” the western that Alec Baldwin was filming, no one would have died. It’s a simple solution to prevent anything like this from happening again.Ellen EttingerNew YorkElection Deniers Wasting Taxpayer FundsA ballot cast for former President Donald J. Trump that was part of the county’s recount.Kriston Jae Bethel for The New York TimesTo the Editor:Re “Despite Recount of 2020 Ballots, County’s Deniers Cling to Doubts” (front page, Jan. 16):Sensible taxpayers have the right to ask why their tax funds and the time of civil servants are spent on a request for an additional recount or audit of a verified and certified vote absent any evidence of fraud or irregularity.Where no reasonable probable cause exists for any such recount or audit, then any re-examination should be completely at the expense and time of the party that initiated it, especially when these beliefs are conjured up by conspiratorial fantasies or motivated by bad faith.Government officials and civil servants need to be free to focus on the needs of all, and not just the aims of a divisive and selfish minority.Jim CochranDallas More

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      Oil Prices Rise as the West Imposes a Cap on Russian Crude

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      Energy traders pushed crude prices higher on Monday following Europe’s embargo of seaborne Russian crude and a price cap by Group of 7 nations went into effect.Will Russia find buyers for its crude?Sergei Karpukhin/ReutersOil prices climb despite efforts to cap Russian exports Crude oil prices rose this morning after a whirlwind of events that could drastically alter the supply and pricing of energy this winter.An E.U. embargo on Russia’s seaborne oil imports went into effect on Monday, following a decision on Sunday by OPEC producers and Russia to keep production quotas unchanged. Those developments, together with an agreement on Friday by Group of 7 nations to impose a $60 price cap on Russian crude and the emergence of more signs that China is easing its Covid restrictions, set off a modest buying spree among energy traders.By 6 a.m. Eastern, Brent crude, the global benchmark, climbed 2.7 percent, topping $87 per barrel, and West Texas Intermediate was above $82 a barrel.Crude prices have whipsawed since Russia’s invasion of Ukraine in February, rocketing above $100 per barrel in the spring, only to fall over the summer on fears of a global recession. A slowdown in China in particular had capped demand, but prices have remained volatile.Analysts have been scrutinizing fallout from the oil price cap, a move designed to punish Russia for the war in Ukraine — but also meant to avoid significant distortions in the energy markets that would force consumers and businesses to pay even higher prices for fuel.Unsurprisingly, Moscow said this weekend that it wouldn’t accept the Western price cap, and that it would cut sales to countries that participate in the arrangement. How much of an effect that will have is unclear: Even before Monday, European countries have systematically reduced their Russian crude purchases since the start of the war in Ukraine — only for China to step in and buy more oil, often at a discount. But in recent weeks, China has paused some purchases as it waited for details of the price cap to be announced.Helima Croft, the head of global commodity strategy at RBC Capital Markets, warned in an investor note this weekend that prices could be even more volatile in the weeks ahead as traders watch for signs that Russia could fully cut off oil exports to former trading partners in retaliation for the price cap.HERE’S WHAT’S HAPPENING Chinese cities ease zero-Covid restrictions. Shenzhen and Shanghai were the latest big cities to scrap requirements like testing before traveling on public transport, following widespread protests against Beijing’s tough pandemic rules. Shares in Hong Kong and Shanghai jumped amid investor hopes of a broader easing of Chinese Covid restrictions, though analysts warned such a move would take time.Lachlan Murdoch is set to testify in a Fox News lawsuit on Monday. The C.E.O. of Fox will be deposed as part of a lawsuit against the network by Dominion Voting Systems. He is the highest-ranking executive to be ensnared in the lawsuit, in which Dominion argues it was defamed by Fox News anchors repeatedly amplifying false claims about the company’s voting machines in the 2020 election.Wall Street banks weigh cutting bonuses. Bank of America, Citigroup and JPMorgan Chase may cut bonus pools for investment bankers by as much as 30 percent, Bloomberg reports, amid a steep drop in M.& A. activity. That follows plans by Goldman Sachs to cut bonuses for its traders, even though their division posted strong results.Credit Suisse’s investment bank spinoff reportedly draws big new backers. Crown Prince Mohammed bin Salman of Saudi Arabia and a merchant bank run by the former Barclays C.E.O. Bob Diamond may invest in CS First Boston, which is set to be spun off from Credit Suisse, The Wall Street Journal reports. The spinoff is a key part of the Swiss bank’s planned revamp.Delta reaches a nearly $8 billion pay-raise deal with pilots. The agreement in principle would raise pilots’ pay by 31 percent over four years, as well as include a one-time payout. If finalized, the agreement will set a baseline for other airlines in their negotiations with pilots.Crypto’s false calm If this is the crypto apocalypse, investors see a buying opportunity. The price of Bitcoin is up nearly 7 percent, or almost $1,200, in the past week, to just under $17,400.But that market calm does not mean the crypto contagion is contained. The fallout from the collapse last month of Sam Bankman-Fried’s crypto exchange, FTX, has spread to other firms, setting off a wave of layoffs, lawsuits and investigations. Shareholders of Silvergate, the U.S. bank that processed payments and money transfers for FTX, sued the bank for negligence, calling the exchange a Ponzi scheme.Meanwhile, customers of Gemini, the crypto exchange owned by the Winklevoss twins, are owed as much as $900 million from Genesis, the crypto lender that has faced severe financial distress since FTX’s collapse, according to The Financial Times. And ByBit, a major crypto exchange, announced this weekend that it would cut 30 percent of its staff, the latest firm to cut its head count as digital asset prices sink.Here’s what else is happening in crypto:Mr. Bankman-Fried said on Sunday that he would be willing to testify before the House Financial Services Committee. The catch: S.B.F., as he is known, probably won’t be ready to speak with lawmakers in time for Dec. 13 hearings into the implosion of FTX.Mr. Bankman-Fried’s media tour shows no signs of slowing down. He told The Financial Times that he regretted giving Alameda Research, the trading affiliate of FTX, favorable borrowing limits.S.B.F.’s father, the Stanford law professor Joseph Bankman, has canceled a class he was set to teach next year. Bankman did work for FTX’s philanthropic efforts and is helping with his son’s legal defense.FTX’s bankruptcy has international regulators, including those in Cyprus, Turkey and the Bahamas, squabbling over the company’s assets, potentially complicating which customers get repaid and how much.Andrew Vara, the U.S. bankruptcy trustee for FTX’s case, called on the Delaware court to appoint an independent examiner into the exchange’s sudden collapse, saying there is substantial evidence to suggest that misconduct and fraud were involved.Even though calls for investigations are intensifying, that doesn’t mean Bankman-Fried’s arrest is imminent.On the light side: S.B.F., an eager player of the League of Legends video game, has been getting shade from the likes of Elon Musk and Representative Alexandria Ocasio-Cortez for being a mediocre player.Have normal times returned to Twitter? Elon Musk is still running Twitter, so naturally, there is still plenty of drama around the social network — notably in the billionaire owner’s decision to actively promote the release of internal documents about executives’ 2020 decision to restrict tweets linking to a news report about Hunter Biden.Despite that, it appears that some major advertisers are slowly returning to Twitter’s platform, after many hit pause following Musk’s promise to revamp how the site moderates user content.Amazon plans to resume buying ads on Twitter, to the tune of $100 million a year, according to Zoë Schiffer of Platformer. Although the e-commerce giant, unlike others, had not quit its ad spending altogether since Musk’s takeover, it had paused some of its campaigns.Meanwhile, Mr. Musk said in a live audio event on Twitter over the weekend that Apple had “fully resumed” ad spending on the social network. The iPhone maker has long been one of the biggest ad purchasers on Twitter. Last week, Mr. Musk said that he had resolved a feud with Apple, chalking up the disagreements to a misunderstanding.That’s a rare bit of welcome news for Twitter’s business. The Times reported last week that the company had rapidly cut revenue projections, as U.S. ad sales continued to come in well below internal expectations. Advertisers have been alarmed by Mr. Musk’s pledges to lessen restrictions on user content, as well as a botched rollout of revamped verification badges that briefly let paying subscribers impersonate brands. Automakers like G.M. have also been concerned that Twitter could share their ad data with the Musk-owned Tesla, a key rival.Mr. Musk introduced a new bit of drama into Twitter over the weekend, when he touted the release of the so-called Twitter Files. The independent journalist Matt Taibbi — who famously called Goldman Sachs a “vampire squid” — published internal documents showing executives’ deliberations about how to handle dissemination of a New York Post story based on files from a laptop stolen from Hunter Biden.The move rankled some former Twitter executives, including the company’s former head of trust and safety, Yoel Roth, who said publicizing unredacted documents was “fundamentally unacceptable.” (Musk later conceded, “I think we should have excluded some email addresses.”)“It’s like a cake that was dropped on the table and it looks more or less fine, but inside it’s all blown up.” — Vladislav Inozemtsev, the Washington-based director of the Center for Post-Industrial Studies, a Russian research group, on the state of the Russian economy following sanctions and an exodus of Western firms.The week ahead Politics, inflation data and a trickle of earnings reports will be in focus this week. Here’s what to look for:Tomorrow: A key Senate seat is up for grabs in the Georgia runoff election. Early-voting tallies have smashed state records.Wednesday: New data on the health of the world’s two largest economies will be published, with U.S. consumer credit and China trade data scheduled for release.Thursday: Costco and Broadcom release quarterly results.Friday: The University of Michigan Consumer Sentiment Index and Producer Price Index data are set to come out. China will also release a fresh batch of inflation data.THE SPEED READ DealsOne of the Democratic commissioners at the F.T.C. reportedly favors a less-confrontational approach to Microsoft’s $69 billion takeover of Activision Blizzard, potentially undercutting efforts to block the deal. (New York Post)The private equity firm CVC is said to be weighing options, including a sale, of the computer accessories maker Razer, less than a year after buying the business. (Bloomberg)Assa Abloy will sell its Emtek and Yale security brands to Fortune Brands Home & Security for $800 million. (Reuters)PolicyMeta faces a trio of E.U. privacy fines that could exceed $2 billion, a record. (Politico)The European Commission’s president, Ursula von der Leyen, said that Europe needed to overhaul its public investment rules so its firms could better compete against American counterparts who receive Inflation Reduction Act funding. (FT)New Zealand plans to force Meta’s Facebook and Google to pay news publishers for the content hosted on their platforms, taking a cue from Australia and Canada. (WSJ)Best of the restIt’s not just Big Tech: Big media companies are cutting jobs, too. (WSJ)“Goblin mode,” an Elon Musk favorite, was named Oxford Languages’ 2022 word of the year. (NYT)Activision Blizzard game testers unanimously voted to form a union. (Reuters)“The 4-day week: does it actually work?” (FT)We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com. More

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      As Venezuelan Antagonists Talk, the U.S. Softens Its Stance

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      Negotiations between the Venezuelan government and opposition could lead to an easing of the country’s protracted crisis.BOGOTÁ, Colombia — A rare meeting between leaders of Venezuela’s bitterly divided government and opposition is expected to result in two major agreements meant to ease the country’s complex political and humanitarian crisis.The meeting partly reflects the economic ripple effects of Russia’s Ukraine invasion, which has reduced global oil supplies and pushed the United States to reconsider its restrictions on energy companies operating in Venezuela.If all goes as planned, the talks, scheduled for Saturday, will lead to an agreement to transfer up to $3 billion in Venezuelan government funds frozen overseas into a humanitarian program administered by the United Nations — a concession by President Nicolás Maduro of Venezuela, who has long denied the scope of the suffering that has unfolded under his tenure. At the same time, the United States is expected to approve a license request by Chevron Corp. to expand operations in Venezuela, according to three people familiar with the deal. The agreement could represent an important step toward allowing Venezuela to re-enter the international oil market, something Mr. Maduro desperately needs to improve the economy.U.S. State Department officials have publicly applauded the return to negotiations between the two parties, after an earlier effort was cut off by the Maduro government last year. But a Biden administration official familiar with the talks said that any action related to Chevron in Venezuela “is contingent on if the parties actually announce specific commitments to support the people of Venezuela.”The official requested anonymity to be able to speak freely about the matter.For years, Chevron and other oil companies have been prevented from large-scale operations in Venezuela by U.S. sanctions designed to starve Mr. Maduro’s government.President Nicolás Maduro of Venezuela speaking in Caracas earlier this month.Federico Parra/Agence France-Presse — Getty ImagesFollowing the expected accord, other companies are likely to press the United States to further lift Venezuela-related restrictions, including sanctions that ban entities in India and elsewhere from importing Venezuelan oil, said Francisco Monaldi, director of Rice University’s Latin America Energy Program.The United States is likely to tie such actions to further concessions by Mr. Maduro. But if it does lift the sanctions, that would be an economic “game changer” for Venezuela’s authoritarian leader, Mr. Monaldi added.“My concern,” he said of the expected Chevron license, “is that the U.S. seems to be giving a lot for very little.”A Chevron spokesman would not comment on the expected agreement.The meeting between the Venezuelan government and opposition leaders, held in Mexico, is the outcome of more than a year of conversations between the two sides about how to address the country’s economic, political and humanitarian crisis, which dates to at least 2014.But the talks also are part of a larger softening of U.S. policy toward Venezuela, which many analysts say is related to a growing global need for non-Russian oil sources. Venezuela is believed to hold the largest oil reserves of any country.The United States is a supporter of the Venezuela dialogue, not a participant.The Biden administration official said that any action related to Chevron in Venezuela was not a response to energy prices. “This is about the regime taking the steps needed to support the restoration of democracy in Venezuela,” the person said.Any new license would be time-limited and would prevent Venezuela from receiving profits from the oil sales by Chevron, the official added, explaining that the Biden administration “would retain the authority to amend or revoke authorizations should the Maduro regime fail to negotiate in good faith.”For years, the Trump administration tried to weaken Mr. Maduro through sanctions and isolation, recognizing the opposition leader Juan Guaidó as president and pulling Washington’s top diplomats out of Caracas.The Biden administration has opted for more engagement.In June, the American ambassador to Venezuela, James Story, who is now based in neighboring Colombia, flew to Caracas to meet with government and opposition leaders. In October, the United States granted clemency to two nephews of Mr. Maduro’s wife in exchange for seven Americans held captive in Venezuela. The nephews had been sentenced to 18 years in prison for conspiring to smuggle cocaine.The Venezuelan opposition leader, Juan Guaidó, speaking in Caracas on Monday.Miguel Gutierrez/EPA, via ShutterstockIt would take years for Venezuela’s neglected oil infrastructure to have an impact on the global market. But with no sign that tensions between Russia and the West could ease soon, some leaders believe the wait could be worth it.“I think energy was one of the things that made it possible, perhaps politically, for Biden to take the rather bold step of communicating directly” with Mr. Maduro’s government, said Phil Gunson, an analyst with the International Crisis Group who has lived in Venezuela for more than two decades.But he cautioned that the American softening on Venezuela predated the war in Ukraine.“Energy is a factor” in the strategy shift, he said, but “it’s not the only factor.”Venezuela was once among the most affluent countries in Latin America, its economy buoyed by oil. But mismanagement and corruption by leaders claiming socialist ideals plunged the economy into disarray, while Mr. Maduro and his predecessor, Hugo Chávez, gutted its democratic institutions.The situation has prompted the largest cross-border migration crisis in the Western Hemisphere, with more than 7 million Venezuelans — a quarter of the population — fleeing, according to the United Nations. Recently, a record number of Venezuelans have arrived at the U.S. border, most of them trekking through a harrowing jungle called the Darién Gap to get there.The talks in Mexico are supposed to be part of a series of meetings between the Venezuelan government and opposition. Much of the opposition hopes that political concessions will be next on the agenda.Mr. Maduro is focused on getting American sanctions lifted, which would help him improve the economy — and perhaps win a presidential election already slated for 2024.The Venezuelan opposition has long said its goal is to push Mr. Maduro to set free and fair conditions that would give them the opportunity to oust in him in that election.Mr. Guaidó recently called that vote “the door to democracy, freedom and the reunion of the family.”Lining up to vote during regional elections in Caracas last November.Adriana Loureiro Fernandez for The New York TimesIn the past, Mr. Maduro has controlled the vote by banning many opposition figures from political participation, jailing others and co-opting many political parties. He holds elections to project a veneer of legitimacy.Speaking on state television about the Mexico talks this week, Mr. Maduro said he wanted to make it clear: “Nobody is going to impose anything on us, not today, not tomorrow, not ever.”The United States still recognizes Mr. Guaidó as the country’s president, though his global influence has fallen significantly after a bid to support him failed to oust Mr. Maduro.Mr. Monaldi, the energy expert, said the Chevron deal was not merely symbolic — within two years, the company could be pumping more than 200,000 barrels a day in Venezuela, adding to the approximately 765,000 barrels pumped daily today, according to Argus, an industry monitor.For the United States and for the opposition, the talks are a gamble.On the one hand, simply getting Mr. Maduro to negotiate is a victory, and the $3 billion humanitarian deal could be a major step toward alleviating suffering.On the other hand, said Mr. Gunson, the aid and the Chevron deal could improve economic conditions, lifting Mr. Maduro’s popularity.Still, he hasn’t given an inch on the political front.“That’s why there’s so much nail biting for the people in the administration who are pushing this policy,” said Mr. Gunson. “Because if Maduro essentially says, ‘Thank you very much,’ and doesn’t offer any concessions, then they’re going to look pretty foolish.”Isayen Herrera contributed reporting from Caracas, Venezuela, and Clifford Krauss from Houston. 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      How the Price of Gas Became America’s Most Important Political Issue

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      President Biden knows the political power of the price of gasoline.About two weeks ago, fearing what an uptick in gas prices might do to Democrats at the ballot box in the midterms, Mr. Biden announced the release of 15 million barrels from the United States’ emergency petroleum stockpile in an effort to drive down prices. A gallon now costs $3.78 on average compared with $5.03 five months ago, but that is still higher than what Americans want to pay.To show he means business, Mr. Biden went a step further this week, calling on Congress to consider a windfall profits tax on oil companies, which are reaping record gains since Russia’s invasion of Ukraine and a spike in oil prices. “It’s time for these companies to stop war profiteering,” Mr. Biden said.As he contemplates whether these measures will be enough to save his party on Tuesday, he seems to be recalling the early days of his political career. Mr. Biden entered the Senate in 1973, at the age of 30, just as the energy crisis of the 1970s was changing life as Americans had known it. In October of that year, in response to America’s support of Israel in the Yom Kippur War, OPEC’s Arab members imposed an embargo on the United States, sending prices soaring by more than sevenfold.To understand the consequences of this price hike, the young senator from Delaware hitched a ride on a 47,000-pound big rig hauling hollow-shell pipe for a 15-hour, 536-mile journey through five states. After talking to hundreds of angry truckers at a stop in Shiloh, Ohio, Mr. Biden was sympathetic. The winter storm he had just driven through was, he said, “nothing compared to the snow job truck drivers I met believe the government is handing them.”The energy situation would spell political trouble for President Richard Nixon, already deeply wounded by Watergate, as Americans blamed elected officials for their troubles. Millions of Americans were waiting in lines to fill up their tanks and feeling the pinch of higher prices on their family budgets. “What is worse than ‘Watergate’ and all the various charges against the president? Answer — the gas crisis in Bergen County,” a suburban New Jersey man wrote to his senator. “We the American People are tired of the lack of competent and effective leadership,” the Concerned Citizens of Maryland told Mr. Nixon.Jimmy Carter, then the governor of Georgia, accused his predecessors of “gross mismanagement” as he ran for president seeking to quell the energy crisis. But after his 1976 election, Mr. Carter wasn’t so lucky: A second oil shock struck in 1979, this one triggered by unrest in Iran. Prices soared again, up more than 1,000 percent since the start of the decade. “I’ll give it to you straight,” Mr. Carter said in 1979. “Each one of us will have to use less oil and pay more for it.”There was a “panic at the pumps,” as a New York service station representative called it at the time, leading to gas riots, violence, economic chaos and more. Long lines lasted for hours and soaring prices broke the dollar-a-gallon barrier, resulting in a sense of defeat and national decay. Americans are being “crucified on the cross of inflation,” a group of Chicago truckers said. “People are freaking out,” the California Energy Commission’s chairman said. No one came in for more blame than Mr. Carter. “Energy affects the life of every goddamn American, and most of them are mad at us,” a White House aide told Newsweek. “Energy is our Vietnam,” another official said.In 1980, Ronald Reagan defeated Mr. Carter — the first Democratic president of Mr. Biden’s political career — in a landslide.By the end of the 1970s, the price of a gallon of gasoline had become one of the most explosive issues in American political life. It still is. When presidents see gas prices tick up, they inevitably get a sick feeling in their stomachs. Rising gas prices tend to correlate with a decline in presidential approval ratings, which in turn erodes support for the incumbent party at the polls.In times of economic instability, gas prices are the most visible and easily understandable gauge of how the nation is faring: Outsize placards on every street corner and at every rest stop are a constant reminder for many citizens that times are tough, neon signs that shine projections of pocketbook pain down to the thousandth of a decimal. You don’t need to know much about macroeconomics or public policy to know that you’re being squeezed.America lives under the shadow of King Oil because our lives are organized around our cars and our cars run on gasoline.The roots of this dependence go back to before the 1970s oil shocks, to the postwar years when America’s economy boomed, thanks to cheap and plentiful gas. The country was building a massive system of interstate highways made possible by the 1956 Interstate Highway Act; developers erected single-family suburban homes that required a car trip just to pick up a pint of milk; the government failed to invest in mass transit. Gas stations competed with giveaways and free windshield washings. The drive-in movie theater and the drive-through restaurant had become icons of American culture. Cars grew and grew in size until they became living rooms on wheels. With their tail fins, luxurious interiors and powerful engines, cars were the embodiment of American freedom.Until they weren’t. “The great American ride is ending,” the title character in “Rabbit Is Rich,” John Updike’s iconic novel of late-’70s America, thinks to himself as he surveys his car lot. Instead of singing about the open road, Johnny Cash made commercials, paid for by oil companies, about the need to “drive slow and save gas.”Gas lines in Midtown Manhattan in May 1979.Sara Krulwich/The New York TimesAppeals to conservation went unheeded. Americans refused to consume less; we resisted developing new forms of energy. As a result, the nation was running in place. Americans wanted everything to be the same.By the time Mr. Reagan left office in 1989, there were over 30 million more cars on the road than there had been at the start of the energy crisis in 1973. And in spite of calls for energy independence, America got more and more of its oil from the Persian Gulf. It was not a surprise, then, that President George H.W. Bush, himself an oilman, launched a military operation in 1991, Operation Desert Storm, in response to Saddam Hussein’s attack on Kuwait. “We cannot allow any tyrant to practice economic blackmail,” he said.President Bill Clinton’s term did little to wean America off its oil addiction. During his administration, S.U.V.s, which were not subject to fuel efficiency standards, were coming to dominate the market. No wonder that in 2000, as gas prices spurted up, in advance of the election, Mr. Clinton released oil from the strategic reserve, a fail-safe created in the 1970s. His solution to higher prices was to flood the market with product rather than to stem demand, hoping to bolster the electoral prospects of Al Gore, his vice president and a passionate environmentalist.That story has continued to play out. In 2008, congressional Republicans attempted to lay the blame for record-high prices on House Speaker Nancy Pelosi, calling it the “Pelosi Premium.” The strategy failed, given the collapse of the economy when George W. Bush was in the White House. But the effort reflected the political reality of prices at the pump, still the case today. The question is: How long can this last?Mr. Biden has watched as his party’s political fortunes have been driven by the ups and downs of energy prices since the early 1970s. Over those nearly 50 years he has undoubtedly discovered the tension at the heart of this: While politicians live and die in the short term, it’s only long-term policies that can offer an enduring solution.Gas prices are down now, but are they down enough to help his party next week? And will they stay down ahead of the 2024 presidential election? Those questions are most likely on the top of Mr. Biden’s mind.In 1981, when Mr. Reagan, soon after taking office, used his executive authority to get rid of the price controls on oil that had come into effect during the crisis, Mr. Biden objected. “We must continue to fight for more responsible energy economic policy,” he wrote in an op-ed. By that he meant a “permanent” windfall tax on oil companies, which at the time were reaping record profits. The taxes would pay for relief from the “excessive costs” of energy.In the 1970s, Democrats thought the oil hikes that followed war and revolution in the Middle East required an equally drastic political response: price controls, rationing and corporate profit caps. Today, with OPEC price hawks taking advantage of another war, polls suggest that Mr. Biden would see enormous political and electoral dividends by imposing temporary price and profit controls on the industry. Some economists, like the Nobel laureate Joseph Stiglitz, agree.So, too, do many members of Congress. “We know that big oil companies are exploiting Putin’s invasion of Ukraine to drive up prices at the pump for American families,” Senator Sherrod Brown of Ohio, a Democrat, recently told me. “This sort of profiteering is unacceptable and we need to put a stop to it. A windfall profits tax would help us take on corporate power and deliver relief directly to families.”Now Mr. Biden is listening to the lessons of his long career. His release from the strategic petroleum reserve comes after a similar move nearly a year ago, followed up by a failed effort to get OPEC to increase its production and the jawboning of oil companies. “You should not be using your profits to buy back stock or for dividends,” the president said. “Not now. Not while a war is raging.” Instead, he said, “Bring down the price you charge at the pump.” Or else — as he told the companies this week.But just as he is trying to ease Americans’ pain, he also recognizes that the permanent solution comes from weaning ourselves off fossil fuels from foreign powers, like Russia and Saudi Arabia, that see oil as a geopolitical weapon. Even a young Joe Biden understood this: In the weeks after the 1973 Arab embargo, he was one of five senators who voted against the Trans-Alaska Pipeline and instead supported funding mass transit.What was never really on the table was using less gas and driving fewer cars. President Carter tried to solve the energy crisis, in part, with a famous prime-time speech asking the United States to change its wasteful, self-indulgent ways, as Americans were waiting in gas lines. It was a colossal failure. The installation of solar panels on the White House roof, when Mr. Carter promised that 20 percent of all energy would come from the sun and other renewable sources by 2000, also fell flat.Mr. Biden knows this. That’s why he has worked hard to make renewable alternatives a reality with the Inflation Reduction Act, a climate bill investing historic amounts into a green transition. And as much as he, like so many presidents, champions himself as a “car guy” who loves his 1967 Corvette Stingray, he has also celebrated recent pushes like Ford’s to phase out combustion engines.But those changes take time. Just as they have since the 1970s, voters want relief and they want it now. In 1973, Mr. Biden said his constituents felt that “the federal government isn’t listening.” Nearly half a century later, as Americans take to the polls, Mr. Biden wants them to know “who is standing with them and who is only looking out for their own bottom line.”Even as Mr. Biden might get minimal short-term benefits from his energy and climate policies — and minimal relief in gas prices in the near future — history may look back on his record as a turning point, when America didn’t just start ending its gas addiction but went further into alternatives that began making our country and our politics less in thrall to King Oil.Meg Jacobs teaches history and public affairs at Princeton and is the author of “Pocketbook Politics: Economic Citizenship in Twentieth-Century America” and “Panic at the Pump: The Energy Crisis and the Transformation of American Politics in the 1970s.”The Times is committed to publishing a diversity of letters to the editor. 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