Economics
Do General Subsidies Substantially Increase Demand for Energy?
In yesterday’s (June 15) print edition of the Wall Street Journal, economists Mickey D. Levy and Charles I. Plosser, in “Inflation Demands Bold Fed…

In yesterday’s (June 15) print edition of the Wall Street Journal, economists Mickey D. Levy and Charles I. Plosser, in “Inflation Demands Bold Fed Action,” write:
Strikingly, many [state and local governments] are now providing financial subsidies to offset higher gasoline costs, which may buy votes for local elected officials but also contributes to demand for energy and thus to inflation.
If the subsidies are given conditional on incremental usage of gasoline and other energies, then they’re correct. However, the one I’m most familiar with, the one that Governor Newsome has proposed for California, would give a $400 debit card or check to an owner of a registered vehicle. There is no requirement that it be spent on fuel.
Will this, if passed into law, add to generalized demand? Yes. Would that then cause a slight increase in the demand for fuel? Yes. But their sentence would have been more on target it they had written:
Strikingly, many are now providing financial subsidies to offset higher gasoline costs, which may buy votes for local elected officials but also contributes to overall demand.

Doug Casey On The Death Of Privacy… And What Comes Next
Doug Casey On The Death Of Privacy… And What Comes Next
Authored by Doug Casey via InternationalMan.com,
International Man: In practically…
IMF Warns Of Prolonged High Interest Rates, Urges Fiscal Tightening To Tackle Inflation
IMF Warns Of Prolonged High Interest Rates, Urges Fiscal Tightening To Tackle Inflation
Authored by Liam Cosgrove via The Epoch Times,
In…
How To Face Risk In An Uncertain World
How To Face Risk In An Uncertain World
Authored by MN Gordon via EconomicPrism.com,
Managing risk. Mitigating uncertainty. Is attempting…
-
Financing News17 hours ago
Montero Bolsters Legal Team and Provides Update on CAD$ 90 million ICSID Arbitration Claim against the Government of Tanzania
-
Energy & Critical Metals24 hours ago
Graphite One is building America’s first graphite source ahead of EV materials supply squeeze – Richard Mills
-
Energy & Critical Metals16 hours ago
Ford EV customers to have access to Tesla Superchargers starting next year; Tesla NACS on Ford EVs from 2025
-
Financing News24 hours ago
FE BATTERY METALS INITIATES BIOGEOCHEMSITRY SURVEY ON TRIX PROPERTY LOCATED IN THE GEORGIA LAKE AREA AND PROVIDES CORPORATE UPDATE
-
Companies24 hours ago
Graphite One 在 EV 材料供应紧缩之前正在建设美国第一个石墨源
-
Economics8 hours ago
3 Household-Name Stocks to Buy on the Dip
-
Economics7 hours ago
Take Two: Turkey’s Election Circus Gets Even Crazier
-
Economics11 hours ago
As Interest Rates Rise, the Era of “Deficits Don’t Matter” Is Over