Inflation is at its highest level in decades, leaving far too many Hoosiers struggling to pay for necessities. And that’s if they can even find the products they are looking for. This also is the fate of many businesses that consistently face overpriced and backordered items.
What’s all the more frustrating is the reaction by the federal government. That this took them by surprise and the belief that things wouldn’t get this bad. In reality, our unfortunate path has played out as many economists predicted.
Those paying attention knew this would happen due to the various stimulus packages passed by Congress and pushed for by the executive branch. There were clear warnings that this was going to put too much money in the economy and there wasn’t going to be enough supply to meet demand. Add to that the long list of supply chain issues that were evident throughout the pandemic.
The rush to implement green energy policies is also to blame. These initiatives have directed suppliers to go therenewable energy route at the expense of petroleum production. Specifically, this has driven up prices at the pump and for anything related to oil. The Biden administration has simply tried to go too far too fast with its energy policy.
Energy costs are inherent to our economy since there is little those costs don’t touch. So any increase in those prices sets up a domino effect. Petroleum in particular is a key piece of many things we make —- either directly in materials or through packaging such as plastics.
It’s past time for the federal government to come up with concrete policies to help with the inflation crisis and not get wrapped up in the continued blame game that benefits no one.
President and CEO Indiana Chamber
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