What is inflation? Inflation is a general increase in the price level. It can be felt in certain segments in our economy or across the board, a large jump in the prices of all consumer goods and services. In my economic opinion we are seeing a large increase in energy prices for a variety of reasons. The reasons are the same since 1973. It is inflation pure and simple. It would be nice that in the last 37 years since the first energy crisis in 1973 that we had a comprehensive plan to drill and refine oil in our country, to lower the amount of dollars that must go to OPEC for our oil and to show some stabilization for heating oil consumers especially here in the Northeast. But we have the same comical policies which have hindered our energy policy and independence every year now since 1973. And we will hear all the political talk of new drilling, alternative energy and the list goes on.
But the energy consumer will be paying much more over the next few months. All because our elected officials are clueless when it comes to the economics laws of energy.