When President Joe Biden spoke from the White House Tuesday about inflation – which is at its highest level in decades – he acknowledged it “is our top economic challenge right now.” However, the Indiana Chamber was disappointed that no new policy initiatives to help the situation were announced.
This unfortunate path is one many economists predicted would happen due to the various stimulus packages passed by Congress (and pushed for by the executive branch). There were warnings that this was going to put too much money in people’s hands and there wasn’t going to be enough supply to meet demand.
Add to that the long list of supply chain issues that have been compounded by Russia waging war on Ukraine, which is impacting certain products like wheat and fertilizer, to name two.
The rush to implement green energy policies is also to blame; these have directed suppliers to go the renewable energy route at the expense of petroleum production. The administration has simply overplayed its hand and tried to go too far too fast.
Energy costs are inherent to our economy – there is not much those costs don’t touch. So any increase in those prices, set up a domino effect. Petroleum in particular is a key piece of many things we make – either directly or through packaging; things such as materials, medicines and plastics.
Too many Americans are struggling right now to pay for vital needs or even finding the products that they need. It’s past time for the federal government to come up with concrete actions and not get wrapped up in the blame game.
Kevin Brinegar is president and CEO of the Indiana Chamber of Commerce. He joined the organization in 1992 and assumed the leadership role a decade later.
