Inflation surges 6.8 percent, Biden’s bad energy policies making it worse
Consumer prices are up 6.8 percent this year, making it the highest rate of inflation since 1982. There are many reasons for the inflation, including a huge expansion of the money supply and the passage of enormous federal spending bills, but liberal energy policies in the United States and around the world are undeniably making matters worse.
Rising energy prices make everything else more expensive
Energy is part of every aspect of our lives, which is why I’ve stated many times before that energy is the invisible ingredient in everything. When energy becomes more expensive, everything becomes more expensive.
Unfortunately, misguided energy policies at home and abroad have restricted the supply of energy and caused large increases in energy prices. These higher costs are materializing in every aspect of our lives.
Bad energy policy, abroad
Energy prices are increasing in the United States, but they are skyrocketing in Europe, where governments have banned hydraulic fracturing for natural gas and oil and have hoped that wind and solar could reliably power their societies. They cannot, and now these countries are learning a very hard lesson on the importance of having a reliable supply of affordable energy.
Year-ahead electricity prices in Europe are hitting record highs. Electricity prices are rising because European nations like Britain have shut down their coal plants and are heavily reliant upon natural gas.
In Germany, which is a “green” darling of liberal legislators in Minnesota, they are shutting down reliable nuclear power plants before the end of their useful lifetime and “replacing” them with wind and solar.
Of course, this means that Germany is reliant upon Russian natural gas and coal to provide electricity when the wind isn’t blowing or the sun isn’t shining, like right now.
Skyrocketing electricity prices are ravaging Europe’s industrial sector. High natural gas prices in Europe have caused fertilizer factories to shut down because it costs too much to run. A falling supply has caused the price of fertilizer to increase around the globe, which will cause the price of food everywhere to get more expensive.
Furthermore, steelmakers in Spain are shutting down production because it is too expensive to operate. The supply crunch for steel makes it more expensive to build infrastructure, mechanical equipment, cars and trucks, and almost every appliance in your home.
Bad energy policy, at home
Upon entering office, President Biden enacted a series of measures meant to stifle the oil and natural gas industries, including canceling the permits for the Keystone XL pipeline and attempting to “pause” the sale of drilling leases on federal lands.
These actions sent a signal to Canadian and American energy producers that this administration does not view them as an asset, but rather a liability. In doing so, the Biden administration gave a strong disincentive to invest in bringing more oil and natural gas supplies online, pushing prices upward.
Instead of increasing domestic oil production, which would increase the output of the American economy, which would help curb inflation, the Biden administration has asked OPEC to pump more oil. So far, they have said “no” to his pleas.
Develop America’s exceptional energy supplies
The obvious solution to rising energy prices is to encourage American energy producers to rise to the occasion and bring more supplies to the market for the benefit of Americans, and citizens around the globe.
Booming oil and natural gas production in the United States is exactly what caused oil prices to plummet in 2014, as OPEC and Russia were forced to contend with American frackers who drilled their way to lower oil prices.
The White House may be worried about President Biden’s poll numbers, but working families are worried about putting food on their table and paying their energy bills.
President Biden needs to stop pandering to his anti-energy base and put the needs of American families first. By taking action to decrease energy prices, he will be taking a concrete step toward curbing one of the factors that is fueling inflation.