Gas prices continue to climb without any signs of slowing and if anything that is likely to get worse. More great news this morning, if you are an oil producer that is, but not if fuel is your biggest expense….
Fuel prices drive cost for a lot of items. That fresh fruit you like from the store when it is out of season? That has to be trucked in from somewhere warmer and higher fuel costs mean higher food costs. This is already in the works (see: Food inflation: a growing threat to us all). Rising fuel and food costs will impact those at the lower end of socio-economic spectrum the most as they typically have less wiggle room in their budget. Good news though, the energy policies being pushed in the name of former Vice-President Joe Biden should make this even worse in the coming years! See also Fuel Prices Are About to SKYROCKET. Here Are the REAL Reasons Why.
Inflation is coming. We can’t keep injecting make-believe money into the economy without it driving up prices and inflation is one of those problems that are very difficult to arrest once the ball starts rolling. The rising prices will sap buying power and this will fuel (pun intended) demands for even more “stimulus” long after the coronavirus pandemic has become old news. More money will be printed and injected into the economy, prices will keep going up, the demand for more money will continue ad infinitum.