Policy question: Inflation
- Thread starter Concart
- Start date
T. A. Gardner
Thread Killer
In part it did. If gas and diesel cost more, the cost of operating vehicles using those fuels costs more. So, trucking firms, railways, cargo jets, etc., all raise their shipping rates. That in turn causes everybody else in the supply chain to raise their rates because costs have gone up. It doesn't take a big amount of rate change to cause inflation as a result.
The same goes for products--and there are lots and lots of them--that use oil in their manufacturing process. If, for example, raw plastic costs more, then plastics manufacturers of end products will raise their prices to reflect the higher cost of the raw materials they are using.
All of that is self-evident and doesn't require some sort of sourcing to validate. But if you want them, here:
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What Is the Relationship Between Oil Prices and Inflation?
Discover how inflation and oil prices are connected. Explore the cause and effect relationship between them and learn to recognize trends.
Oil Price and Inflation: What’s the Correlation?
Rising oil prices are often tied to dire headlines warning investors about the looming threat of inflation. But is there a causal relationship between oil prices and inflation?Inflation devalues currencies and results in higher prices for consumer goods and services. In turn, the larger cost of...
investingnews.com
Oh, I’m sorry, I should have excluded fucking morons. My bad.
Matt Dillon
Semolina comes from wheat
Then there would be no OP.
Why don't you try to explain how EO 13990 didn't cause inflation, hmm?
Name calling doesn't explain things, moron.
Agree. It is not simple. That being said, studies are pretty consistent on the quantifiable impact of change in oil prices. So far though, no one has bothered to research. Which is fine. Just a little test on my part. I’m going to do more of these. Mainly to demonstrate that there are very few serious people here.
I did manage to get a masters in economics. Would you like to know what my thesis was?Then there would be no OP.
Why don't you try to explain how EO 13990 didn't cause inflation, hmm?
Matt Dillon
Semolina comes from wheat
Yet you fail to realize the direct correlation between fuel prices and inflation? Figures.
Okay, what was your thesis on?
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anonymoose
Classical Liberal
lol. That’s demonstrated here every day anyway.
Sorry, but it was the correct response to an OP that looked like it was created by a uninformed moron.
Yakuda
Verified User
You wouldn't be here if that was the case.
T. A. Gardner
Thread Killer
As badly researched and written and "Dr" Jill Biden's?
Matt Dillon
Semolina comes from wheat
CuntFart thinks he'th thooper thmart. 
I believe in second chances
Smarter than you is a low bar.CuntFart thinks he'th thooper thmart.
No. I asked what that impact is. Can you read?Yet you fail to realize the direct correlation between fuel prices and inflation? Figures.
Okay, what was your thesis on?
Yakuda
Verified User
From where? Jimmy's Skool of Echonomics?
It is macroeconomics, not microeconomics, but continue.
Crashing the price of oil means that investment crashes by more. If investment goes up by x every dollar of increase in prices, it goes down by two x with every dollar of decrease. Investors price the risk of lower prices very heavily. So that means that decreasing the price will lead to much higher prices in the long term.
It takes a lot of finesse to get past this trap. Biden has it, and has gotten more drilling in the first three years of his administration than trump was able to get in the first three years.
ThatOwlWoman
Leftist Vermin
I believe that he claimed the price of gasoline per barrel was way up, not crude oil. lol
The price of this commodity does affect inflation, as well as making transportation of goods more expensive. Drilling won't do much to help as crude is a commodity and is sold on the world market. The price has to do with supply and demand; ditto for the cost of almost everything else. If we dump more crude into the world marketplace, OPEC will simply cut theirs to keep prices up. I doubt if too many people want to give the U.S. president the power to tell oil companies that they can only sell their products in the U.S. Or maybe they do. MAGATs are not too bright.
PostmodernProphet
fully immersed in faith..
we've witnessed the results of Trump's approach and Biden's approach to energy......which one has cost American consumers AND American business more over a four year period.....now 3,2,1....vote!.......
ThatOwlWoman
Leftist Vermin
The MAGATards think that they are Acme Instant Economists(tm), just like they suddenly all become experts on epidemiology and virology during the pandemic. Drill baby drill doesn't do jack for supply if you don't have the refinery capacity to handle it. Plus, as I said in a prior post, it is sold on the world market and is not just for domestic consumption. Add more to the world supply? OPEC and others will just cut production to keep the price per barrel inflated.