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.

There is no sign of inflation ending soon if we do not change the practices of changing all our fuel sources without a viable replacement.