Where I grew up in northern Minnesota, it’s easy to see the impact that economic hard times leave on disadvantaged communities. With consumers now experiencing record-high gas prices, it is safe to say that Americans—not just back in my hometown—but across the country, are experiencing undue burden.
For many, rising prices bring times of sacrifice. When Americans are pinching pennies, it’s hardly a comfort to hear that high gas prices can be avoided by simply buying an electric vehicle, as transportation secretary Pete Buttigieg recently advised.
As administration officials stubbornly push for a government-driven energy transition, escalating fuel prices often leave families in a bind, where they must choose between meeting energy needs such as heating, cooling, and filling up their gas tank or purchasing essential goods such as clothing, school supplies, and food. This dilemma, commonly known as “heat or eat,” makes all the difference between keeping a home warm or providing nutrition for little ones. The stakes are especially high for low-income, elderly, and minority groups, who spend a more significant portion of their budgets meeting energy needs.
Unfortunately, high energy prices will eat away at their finances in more ways than one. Price hikes at the pump will likely translate into rising prices in supermarket aisles, retail stores, and more. To understand the relationship between fuel and the prices of other goods and services, consider the classic illustration by Leonard Read, “I, Pencil.”
An economic lesson in the form of a short essay, “I, Pencil,” explains how even a seemingly simple pencil is the end product of a vast and intricate network of supply chains. Read argues that while a pencil may seem unremarkable, no one on earth knows how to create one from start to finish. He demonstrates this by tracing the pencil’s complex “ancestry.”
Read relates, in the voice of the pencil itself:
“My family tree begins with what in fact is a tree, a cedar of straight grain that grows in Northern California and Oregon. Now contemplate all the saws and trucks and rope and the countless other gear used in harvesting and carting the cedar logs to the railroad siding.”
Much of the “gear” Read refers to (trucks, logging machinery, etc.) runs on fuel. Suppose for a moment that fuel supplies decrease in Read’s illustration. The lower supply of fuel leads to more competition for fuel among logging and trucking firms, which pushes up the price of fuel. To economize on fuel, loggers may need to slow production, making lumber less abundant and more expensive for businesses that rely on lumber, like pencil manufacturers. With a reduced supply of wood, pencil production will drop, making pencils less plentiful and more costly, too.
These economic principles extend far beyond just pencils. All consumer goods—from food to clothing to housing to electronics—have “family trees” of their own, and one “ancestor” they all have in common is energy. Machines must be powered, materials must be shipped, and many workers still need to commute. Energy shortfalls, then, make goods and services more expensive across the board, reducing living standards for everyone, especially families in need.
While a market-driven energy transition would be welcome, as economic and technological realities stand now, fossil fuels are an indispensable source for these energy needs. Fossil fuels are a key link in innumerable supply chains. By hampering fossil fuel production, the government is hampering the entire economy in its attempts to force and rush an energy transition. That is leading to painfully high prices, not only at the pump but everywhere, and that pain is sharpest for the poor.
The disproportionate harm that rising energy costs inflict upon our most vulnerable communities foreshadows the challenges many of the rest of us will face if we stick to disruptive policies such as these. Any truly just energy transition campaign will refrain from tipping the scales in favor of specific technologies, but instead allow consumers freedom of choice. Through market forces, we can achieve clean, abundant, and affordable energy.
Danielle Butcher
Danielle Butcher is the executive vice president at the American Conservation Coalition (ACC) and fellow at the Independent Women’s Forum (IWF).
This article was originally published on FEE.org. Read the original article.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
