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!

3 comments:

  1. So your solution to high gas prices is to put more taxes on it? Brilliant.

    ReplyDelete
  2. that isn't the full solution. My solution to inflation isn't going to fix inflation tommorow it is a long term goal to fix inflation. And a tax would curve consumbtion so that demand isn't getting greater each day which reduces the increase in oil prices in the long term, although making it more expensive tommorow! But unless we really make oil at it's true price we will have a problem. Because oil is causing many propblems that cost billions! examples global warming causes extreme weather that will destroy the agriculture in the praries! the tax would make oil more expensive , but I would purpose that the tax money goes to canadians every cent in fact. This money helps people pay for the higher oil prices tommorow and in the future! all of this while still lowering inflation , and consumptions of fossil fuels

    ReplyDelete
  3. You're circle of logic is totally illogical. In order to prevent high gas prices you're going to raise the price of gas with a tax which will drive down demand and thus lower gas prices. But higher gas prices will also lower demand and we don't need the government to 'assist' us with a tax in order to create higher gas prices. Just leave it alone.

    ReplyDelete

Any highly offensive matter will be deleted whether it be solid, water, gas or plasma. No comments from outsiders represent the opinions of Owner and Doggy or vanillaman. We reserve the right to delete any comments without explanation.