While liberals tout new research linking climate change and inflation, economists say the real cause is likely to be massive government intervention in the economy purporting to save the climate. .
of studyThe paper, written by four European researchers and published in the scientific journal Communication: Earth and the Environment on March 21, states that, “Temperature rise will lead to a non-linear and sustainable increase in food supply. “It causes headline inflation.” While corporate media, climate change activists, and Democrats have touted this finding, the factors related to climate change that are likely to cause sustained inflation are less likely to affect the governments policymakers push to combat climate change. billions in taxes, spending and regulation, economists interviewed said. Daily Caller News Foundation.
climate Activistinclude climate change power The company, which is spending $80 million to support President Joe Biden in 2024, is touting the study’s results while Associated Press, ABC News, Axios, Los Angeles Times and the hill has been promoting this research since its publication.Democrats on the Senate Budget Committee promotion The X (formerly Twitter) study said its findings show another way that “climate change is raising costs for families and threatening the entire economy.” (Related: Biden says the Inflation Control Act has “nothing to do with inflation”)
Joe Biden decries inflation and runaway government spending — in a 1978 campaign ad https://t.co/zxKRlbR8X4
— Daily Caller (@DailyCaller) January 1, 2024
“Energy inflation permeates throughout the economy. So many people seem to want to say, ‘If you look at the core CPI, energy is being cut.’ No, it’s not. That’s because every product and service in the consumption bundle uses energy, which raises the cost of everything,” said Michael, chief economist and former assistant secretary at the America First Institute for Policy Research. Volkender says. Treasury told DCNF. “It’s Putin’s price increases, it’s the pandemic supply chain problems, it’s ‘greedflation,’ it’s ‘shrinkflation,’ and now it’s climate inflation. It’s not their policy to blame. ”
Democrats and other defenders of the Biden administration have made various accusations against President Vladimir Putin. pandemic Not just corporate greed; price gouging Because of inflation.
“We find a rich response of inflation in different price aggregates to variations in different weather conditions. The strongest and most consistent signal arises from variations in average monthly temperature,” the study said. I am. “These effects also have a substantial impact on headline inflation, although they are larger for food prices.Apart from weak evidence in the electricity sector, we find limited evidence of effects on other price subcomponents. I did.”
The study predicts that food inflation could jump by up to 3% per year over the next decade due to the effects of climate change, particularly rising temperatures and heat waves. The study states that the food inflation that Europe endured in the summer of 2022 will be amplified by 30% to 50% by 2035, given that the research project will have warmed by then.
“Inflation is a currency issue. It has to do with the money supply. Average global temperature has no effect on the amount of money in circulation,” Ryan Young, senior economist at the Institute for Competitive Enterprise, told DCNF. Ta. “Climate change policies, rather than climate change itself, tend to increase inflation. They do this by increasing deficit spending, which central banks are more or less obligated to fund… Typical climate change policies have an even smaller impact on inflation by reducing productivity. Greener products are often less durable and efficient, wasting investments that could be used for other purposes. It will be.”
As of January 2024, the U.S. money supply, or the total amount of currency in circulation in the economy, reflected an increase of nearly $5 trillion compared to January 2020, just before the pandemic hit. according to Based on data from the Federal Reserve Bank of St. Louis. Inflation, along with the Consumer Price Index (CPI), is a persistent problem for the Biden administration and the American economy in 2021 and beyond. To increase It has increased by 18.5% since President Joe Biden took office. (Related: ‘Economic disaster’: Biden’s budget dreams will further fuel sky-high inflation, experts say)
The ‘inflation tax’ is eating into more Americans’ wages now than at any point during Biden’s presidency. https://t.co/ZpHaPXZA1c
— Daily Caller (@DailyCaller) February 15, 2024
The Biden administration is chased It’s the “most ambitious climate change plan in history,” proposing to reshape America’s power grid, cracking down on oil and gas leases, and seeking to force power supply. It would eventually dominate the American car market. Biden’s signature climate bill, the Inflation Control Act (IRA), included: $369 billion I agree with green initiatives, but Goldman Sachs project The actual price tag of these programs could ultimately reach approximately $1.2 trillion.
I’ve seen Europe too. massive inflation From 2021 onwards, the European Union will spend hundreds of billions of euros more on climate policy and initiatives until 2027. according to to the European Commission.
Three of the four authors of this study — christian nickel, Eliza Rhys and Friederike Kuik— Partnering with the European Central Bank. grossly underrated Inflation is expected in 2021 and 2022 amid massive fiscal stimulus in response to the energy crisis and pandemic. Although the European Central Bank and several of its associated researchers were involved in the study, the study notes that the paper does not reflect the official position of the institution or the Eurosystem.
“Climate change does not cause inflation. It is so gradual that prices have time to adjust,” Diana Furchtgott-Roth, director of the Heritage Foundation’s Center for Energy, Climate and Environment, told DCNF. “The effects of warming are being overwhelmed by the much greater demand from upwardly mobile people for air conditioners and other energy-intensive products.”
“It’s the solution to climate change that drives up prices,” she continued. “Intermittent electricity, where wind and solar power turn on and off when the wind blows and the sun shines, and is backed up with gas when wind and solar stop producing energy, is better than continuous energy. It’s also expensive. That’s why electricity bills are going up.”
The study’s authors did not immediately respond to a request for comment.
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