WASHINGTON (AP) – Higher costs for energy and food last year pushed inflation up by the largest amount in 17 years, even though prices generally remained tame outside of those two areas. Meanwhile, industrial output was flat in December, more evidence of a significant slowdown in the economy.
This is sure to be blamed on Bush, if for no other reason that everything is blamed on Bush.
But if you look at what is causing the inflation it becomes clear that the price increases were brought to you, not by the President, but by the Environmental Lobby and their accomplices in the Congress.
It is the Environmental Lobby that prevents us from drilling for oil supplies within our own country, which forces us into more dependence on foreign sources. It is also the Environmental Lobby, who are heavily invested in the “alternative energy” industry, which is forcing the use of Ethanol in our fuel supply. This means that crops that used to be raised for food are now grown for fuel. This creates shortages which has the unsurprising effect of raising the food prices.
The Democrats, in their wisdom, following the Environmental Lobbies script, howl about the increased fuel prices and propose increased fuel taxes, though why the increased taxes will not cause the same inflation is unclear. The other thing is, a fuel tax is highly regressive. The poorer you are the the more of your income is going to go for fuel. The wealthy elite, who can afford the extra taxes, are the same ones that have the financial ability to go out and purchase one of those high priced hybrids or electrics reducing their fuel use.
The Democrats also claim that the increased fuel prices are not the result of decreased energy exploration, but are because of price “gouging” by the oil companies. Numerous investigations over the years have been unable to detect this, but it is an article of faith in “progressive” circles. Strangely enough, the “progressives” can never explain why these “alternative energy” sources are so expensive. It can’t be because of the short supply because if the law of supply and demand doesn’t apply to petroleum, there’s no reason to think it will apply anywhere else.
So if you want to know who is responsible for the highest inflation in 17 years, look no further than your local chapter of the NRDC or Sierra Club.