What is the cause of inflation?
No doubt you
have noticed most everything you buy has gone up significantly in price over
the past two years. There are several things that cause prices to rise faster
than wages. The cost of living going up faster than the money that you make is
inflation.
Inflation is
when prices across the whole economy rise, making your money worth less, like
we have now. When the prices rise in a key area of the economy, it affects
everything else as well. This is especially true when it is the energy and fuel
industries.
When
President Biden took office, America was energy independent. We were producing more
oil and natural gas than we were using. Biden vowed when he became president
that he would kill the coal and oil industries. His goal along with the extreme
members of the Democrat party want to switch America to renewable fuels like
wind, solar hydropower, biomass, and geothermal.
Most people
heat their homes and cook with natural gas. Coal produces 22% of electricity in
America. Natural gas produces another 38% of electricity in America. Nuclear
another 19%. Renewables make up only 20% of the total electricity produced.
The problem
is getting rid of our current fuels before having a source to replace them is
foolish and not sustainable. The downside of changing like this causes the
price of fuels to go up. It is not only gasoline but diesel for moving all the products
we buy. This causes the price of everything to go up, as we can see with
everything we buy.
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