Guest essay by Eric Worrall
According to The Atlantic, Biden did not cause inflation by pouring crazy amounts of money into the economy, the inflation caused by climate change has prevented the economy from reacting the way it was supposed to.
The world is not ready for inflation due to climate change
Extreme weather and energy uncertainty have sent prices soaring.
Via Robinson Meyer
…
Over the past year, consumer prices in the U.S. rose 7%, the fastest increase in nearly four decades, disappointing households and undermining President Joe Biden’s approval rating. And no wonder. High inflation eats away at the underlying engine of the economy, destabilizes consumers, makes it difficult for companies, and prevents people from making solid plans for the future.
…
Now, Biden is not a king, nor does an alchemist on the payroll. But some economists believe he inadvertently did something similar last year when he passed a $1.9 trillion bailout bill into an economy still constrained by the pandemic. With $1,400 in stimulus checks but stuck at home, consumer spending on durable goods surged. But where did all that come from? American dollar hype has spilled over into the world, chasing giants from factories as the Delta variant closes and ports are congested with shipping containers.
But it also chases… scarce wood from the forests of Canada. Some biggest cause Today’s inflation doesn’t seem to be related to a sudden dollar drop. The soaring dollar cannot explain why gas prices are so high or why coffee prices have spiked. Something is happening.
For many years, scientists and economists have alert that climate change could cause major shortages of key commodities, such as alcohol, chocolateand cereals. Financial regulator warned against a “disorderly transition” in which the world commits only to abandoning fossil fuels indiscriminately, so they do not invest enough in their zero-carbon alternative sources. In an economy as prosperous and powerful as the United States, those problems are likely to arise – at least at first – not when grocery store shelves are empty or gas stations go bankrupt but when prices are high. both increased.
That phenomenon, long hypothesized, may be starting to actually arrive. Over the past year, unprecedented weather disasters have caused prices of key commodities to spike and the oil and gas market to fluctuate. allowed Russia and Saudi Arabia to use geopolitical power.
…
Clearly the solution is for President Biden continued closure of pipelines and mining leases and pour more money into the economy, until the supply chain magically heals itself and inflation subsides.
Related
