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The elephant in the room that is driving inflation is energy prices. Every good has to be transported and that requires energy. Every production facility also r
by bdw5204 3y ago
The elephant in the room that is driving inflation is energy prices. Every good has to be transported and that requires energy. Every production facility also requires electricity to run machines.
Energy prices happen to be going up because some people are ideologically committed to raising energy prices and reducing energy production in order to stop climate change. This includes the current US president, who signed a bunch of executive orders right after taking office that increased gas prices by restricting fossil fuel production.
The sanctions on a certain gigantic gas station that is currently at war with one of its neighbors are also a major driver of inflation. There was also transitory inflation due to pandemic era supply chain disruptions. When factories are shut down for health reasons, less stuff gets made and the price of that stuff goes up.
What did not cause inflation? People being able to buy houses, start businesses and find jobs because the interest rates were low. Raising interest rates and putting people out of work is just treating a symptom when the real solution to inflation is to lower energy prices by producing more energy. That means repealing anti-fossil fuel policies[0] and it also means trying to negotiate an end to wars rather than funding the belligerents forever with endless foreign aid.
[0]: Climate change is real and should be addressed via technology not austerity. We are not going to solve anything by making people in developed (1st world) countries poorer or by keeping people in developing (3rd world) countries poor. Those advocating climate austerity are the main motivating factor driving climate change denial because many people will assume its just a hoax powerful people made up to make them poorer.
- rancour 3y ago[flagged]
- venachescu 3y ago> This includes the current US president, who signed a bunch of executive orders right after taking office that increased gas prices by restricting fossil fuel production. I'm sorry, what? https://www.cnn.com/2023/12/19/business/us-production-oil-reserves-crude/index.html https://www.cnn.com/2023/12/19/business/us-production-oil-re...
- gotoeleven 3y agohttps://www.pbs.org/newshour/politics/biden-cancels-last-oil-and-gas-leases-in-alaskas-arctic-refuge-overturns-sales-held-by-trump https://www.pbs.org/newshour/politics/biden-cancels-last-oil... https://www.whitehouse.gov/briefing-room/statements-releases/2024/01/26/fact-sheet-biden-harris-administration-announces-temporary-pause-on-pending-approvals-of-liquefied-natural-gas-exports/ https://www.whitehouse.gov/briefing-room/statements-releases... https://www.nytimes.com/2023/09/29/climate/biden-offshore-drilling-plan.html https://www.nytimes.com/2023/09/29/climate/biden-offshore-dr... This is just the most recent ones.
- _zagj 3y agoDon't forget the Keystone XL cancellation: https://apnews.com/article/donald-trump-joe-biden-keystone-pipeline-canada-environment-and-nature-141eabd7cca6449dfbd2dab8165812f2 https://apnews.com/article/donald-trump-joe-biden-keystone-p...
- _zagj 3y ago> https://www.whitehouse.gov/briefing-room/statements-releases/2024/01/26/fact-sheet-biden-harris-administration-announces-temporary-pause-on-pending-approvals-of-liquefied-natural-gas-exports/ https://www.whitehouse.gov/briefing-room/statements-releases... >> FACT SHEET: Biden- Harris Administration Announces Temporary Pause on Pending Approvals of Liquefied Natural Gas Exports The administration here more or less admits high energy prices are driving inflation. Otherwise, why would they pause new LNG export licenses, even to Europe, where we're fighting a proxy war with Russia and US LNG exports offer a way to hurt Russia and its economy and help our allies at the same time? The climate argument doesn't hold much water, since it isn't clear it won't just mean increased domestic consumption--given that greater supply will, and in fact has, result it much lower prices (which last checked are at pandemic levels)--and even if it does mean less foreign consumption, it could be offset by more consumption of coal and other environmentally worse alternatives to LNG. It's clearly a last-ditch effort by the administration to pull on a deflationary lever before the election.
- gotoeleven 3y agoAnd this one just today! https://tsscolorado.com/dems-unveil-system-changer-bills-to-limit-oil-and-gas-drilling-new-emissions/ https://tsscolorado.com/dems-unveil-system-changer-bills-to-...