Tuesday, April 19, 2011
Solution to inflation!
The main driver of inflation this last month was oil prices! Which is rising , because of the tension in the oil rich middle east. Now if there is more unrest in a few more middle eastern nations oil is going to go up more and more. The truth is even if the middle east was very quite and in peace oil prices would still go up, because the demand is rising and the supply is getting smaller every single day. Since oil is driving up inflation it makes sense to try to curve the demand of oil so that the increase at least isn't that high. A way to reduce demand is a carbon tax which reduces demand of oil based industries. But reducing demand isn't the only solution we need to turn to cleaner energy like solar wind and hydro. We need to have other sources of transport for our food, because if we continue to bring our food by truck and other oil based transport they will be more effected by inflation and oil prices. The solution to this invest in inner city production of food, but also a viable high speed rail hat can transport goods and people and not pollute.Climate change will also effect prices, because with more extreme weather our supply of food won't be good and the demand will always increase. ,If we continue with the Harper ideology that there is no climate change, and big tax cuts to the oil sands that pollute and no investments for our transport inflation will continue to rise!