J.D. Vance Actually Does Understand How Costs Get Passed Along the Supply Chain

Vance says higher energy prices make building houses more costly. What, then, do tariffs on steel and lumber do?

During an otherwise sterling performance in Tuesday night's debate, Sen. J.D. Vance (R–Ohio) made one telling misstep: He admitted that he actually does understand how costs along a supply chain are passed on to consumers.

In response to a question about how to expand the housing supply, Vance argued that part of the solution must be lower energy costs—because those factor into the cost of housing.

"Think about it, if a truck driver is paying 40 percent more for diesel, then the lumber he's delivering to the job site to build the house is also going to become a lot more expensive," Vance said. "If we open up American energy, you will get immediate pricing release relief for American citizens, not by the way, just in housing, but in a whole host of other economic goods too."

That's a good point—and Vance is right that affordable, abundant energy should be a top priority for any presidential administration.

JD Vance by Gage Skidmore is licensed under Flickr CC BY-SA 2.0

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