Greetings, Fellow Alaskans-
This is Huhnkie Lee, running for 2022 US Senate as an independent Alaskan. The nation is experiencing inflations. Let’s analyze the causes of the inflation problems and come up with solutions, shall we?
First, gas price has risen. President Biden is a loyal Democrat and he obeys liberalistic agenda of anti-fossil-fuel-ism, an outshoot of anti-climate-change-ism. So he and his people halted new oil and gas exploration, including ANWR Oil in Alaska. Shortage of supply of oil/gas drives up the price, as the demand for oil/gas has not decreased. It’s plain vanilla demand-supply law in economics. Don’t they have economists in the White House?
Democrats fantasize about a day when oil/gas is replaced by solar/wind power, and all that electric vehicle concepts. That day might come, though this author is skeptical about it, who knows, but even if that day does come, it won’t come soon enough. At least for a long while, the world will continue to depend on fossil fuel. Biden administration’s blockage of oil/gas smells like ideological activism to me.
Since Covid of 2020, Trump/Biden administrations have been locking down businesses, shutting down economies, decreasing production level, decreasing the nation’s economic activities. Then they printed out and handed out more and more Covid money to Americans. One way to understand what inflation is the following equation:
Price = (Amount of Money) / (Amount of Products)
Let’s say, one Mr. Adam is stranded in a lonely island. There is only one apple in the island and Adam has only one dollar bill. Then the apple’s price would be one dollar. Say, the apple tree applies its diligence and increase its production level to produce two apples instead of one. Because there is only one dollar circulating in the lonely island, the apple price now would be 0.5 dollar, or 50 cents. This is a deflation situation.
Next, say, the apple tree produces only one apple, maintaining the same production level as the original scenario. But Adam got greedy and he prints out one more dollar bill and now he has two dollars. Then the apple price will be now 2 dollars. Why? It’s because the printing of more money dilutes the currency value and because there is no increase in apple production. Adam is getting only one apple as before, but now it’s costing him two dollars to pay to the apple tree. As we can see, printing out more money creates economic inefficiency, as Adam has to carry two dollar bills instead of one dollar bill, in order to by the same one apple. This is an inflation situation.
What if the apple tree decides to decrease its production level and produces only half an apple, and Adam prints out another dollar bill out of ever avarice?
Price = 3 / 0.5 = 6
Now the apple price is whooping 6 dollars. That’s what’s going on in America right now. During 2020 Covid, production level decreased, but Trump/Biden administrations handed out Covid money like cheap bubble gums.
Not only that, Trump/Biden administrations further decreased production level by blocking Latin American contract workers who would have legally worked in American farms. Trump/Biden administrations antagonized China and imposed tariffs or blocked imports, decreasing the amount of affordable consumer goods, driving up the prices. Trump/Biden administrations also brought back car manufacturing jobs from Mexico where labor cost is low, back to America where labor cost is high, driving up the car prices.
Then what’s the solution? The solution is to increase production level, increase the supply of goods and services. We need to break the lock and chain of hindering ideologies, in order to unlock the door to progress and prosperity. I apologize if I’m being boring and repetitive, but yes, I’m talking about Pebble Mine and ANWR Oil. To keep a nation’s economy healthy, we need to produce products that sell, products that are useful.
Some DC politicians, like Trump/Biden, are not very creative people. They talk about 1-trillion-dollar infrastructure plan. What are they gonna do with all that money? Demolish a fully functional building and erect a new building, for the benefit of a greener planet? Such activity does not create any values and would be a waste of money and time and labor.
Another reason why inflation is bad is that inflation hurts the poor. Democrats want to help the poor but they’re not quite helping. Biden administration blocks ANWR Oil and gas price goes up. Then how can minimum wage workers drive to work when they can’t afford the gasoline for their cars? What, will Biden administration hand out free electric vehicles to all minimum wage workers in America? See, it just doesn’t work.
How about Pebble Mine? Some worry about water pollution and salmon death. Do you know how bathroom flush water gets filtered? They use centrifugal filter to separate human waste and water and cleaned water goes back to stream. Mining waste water can be cleaned the same way. And mining solid waste can be used to build roads. More on that issue, please see our Pro-Pebble Paper Volume 2:
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3890437
Thanks!