Wednesday, May 11, 2022

Energy supply

What happens to government when the solution to a problem conflicts with ideology. This is going on right now. One of the main reasons for current inflation is the cost of transportation which effects everything the consumer buys. The administration is trying to rely on the Fed to tame inflation but as they buy back bonds they are adding more money to the system and when they raise interest rates they increase the cost of items that consumers purchase on credit, things like the credit card debt, cars and mortgages. The answer is to have the government go to the energy companies and offer them incentives to increase production. Increasing the supply of oil and gas will bring down the price. The concern about climate change will have to take a temporary back seat position.

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