Inflation in The Stations
With the ongoing war in Ukraine, many families in the U.S. have suffered economic losses (New York Times). Specifically, the Russia-Ukraine War has caused a drastic, nationwide increase in the price of oil due to the U.S.’s reliance on Russian oil. This led to an increase in gas and electricity prices as well as worsened inflation in California (ABC10). The average price per gallon of gas in California was $3.61 in 2021, but as of May 20, is $6.02 (American Automobile Association). California is also facing its highest inflation rate in 31 years at 6.6%, which is up 1.5% from last year’s rate (The Orange County Register). Beginning May 10, the Biden-Harris administration has set forth a plan to lessen inflation and lower the deficit nationwide, stating that they plan to build complete energy independence and lower energy bills by calling on Congress to pass clean energy tax credits. Passing them would encourage taxpayers to buy electric vehicles and produce electric power. This would have benefits like helping them save $500 on their utility bills. However, many sources, such as the New York Times, state that the administration’s plan may not be enough to lessen the struggles of average families. Senior Riley Leongkaye believes that many more problems will arise due to the current issues with inflation.
“I fear what consequences these price increases will have for other aspects of life,” Leongkaye said. “Not only are they making it difficult for families to meet their basic needs [in the present], but they will also affect other prices down the line as goods and services generally get more expensive.”
Increased prices of basic necessities have caused difficulties for all Californians, but are especially devastating for lower-income households with budgets that are already strained (Washington Post). According to the Public Policy Institute of California, families whose incomes have not risen by 8% over the last year to account for the rise in prices have suffered a dramatic loss of purchasing power. This situation raises questions over the U.S.’s over-reliance on outside sources of oil. The strategy of importing more oil than what is being produced has become especially questionable during the pandemic, with the shortages and difficulties in shipping logistics it induced. This issue has become highlighted during the Russia-Ukraine War, as the U.S. cannot depend on the oil it usually imports from Russia due to its ban on Russian oil as a sanction. Russian oil accounts for 8% of all U.S. oil imports, making it a major contributor to the oil the U.S. consumes. Since California’s energy supply largely comes from the burning of natural gas such as that from Russia, the state requires sufficient natural gas to power everything requiring electricity (LA Times). California can remedy its current dependence on natural gas by switching to renewable energy sources. However, this solution would take many years to implement; until then, California’s energy deficit will not recede (LA Times). Senior Vanessa Niu believes that phasing into sustainable energy sources is important, but not an immediate solution to the problem.
“It would be ideal if our state could become entirely dependent on renewable energy from solar panels and wind farms, but I do not think we have reached that point yet,” Niu said. “Making this switch would take a long time, but it would be the best way to reduce the burden of having to pay for increasingly expensive gas and electricity.”
Beyond switching to renewable energy entirely, individuals can implement innovative solutions to reduce their energy consumption. According to the Department of Energy, some recommended ways of doing this are purchasing energy-efficient appliances and electronics, using lighting sparingly and reducing the number of appliances that are always on. These steps can allow homeowners to save on electricity bills during this period of increased prices. Calculus, Algebra 1 and Algebra 2 teacher John Buda feels that individuals have power in this situation.
“We have to persevere through this crisis despite these circumstances,” Buda said. “I would advise people to limit unnecessary spending and, for example, walk or bike instead of driving if they are able to. Though it is a difficult situation, I think there is nothing to do but keep a positive perspective and try to keep your bills [and spending] to a minimum.”
