Biden policies, not COVID, are restricting US production, driving inflation: Brouillette
When you restrict production and demand begins to come back, you’re going to have scarcity, Brouillette says
Former Energy Secretary Dan Brouillette told "Fox Business Tonight" it’s not the pandemic causing higher prices and supply issues, but "regulatory uncertainty" surrounding President Biden’s financial and environmental policies.
Dan Brouillette: I’m not quite sure how the government spending more money doesn’t add to even more inflation in the economy. I studied economics. I’m maybe more in the Chicago school than not, and my training leads me to believe that will actually encourage inflation, not discourage it. What’s happening is we’re just seeing scarcity in the marketplace. And what’s driving the scarcity, it’s not so much COVID, it’s not the pandemic, its regulatory uncertainty. It’s uncertainly about the climate policies that we’re hearing about at COP26 [UN Climate Change Conference], it’s uncertainty about financial policies that we’re hearing. Banks are being restrictive in their lending. We’re seeing environmental policies out of the EPA here in the United States, other environmental regulators around the world that are moving very aggressively. All of these things combined are restricting production. When you restrict production and demand begins to come back as we’re seeing it come back, you’re going to have scarcity which is going to drive the prices up, which is going to lead to inflation.
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