The average cost of heating homes is expected to rise significantly this winter as the effects of inflation under Joe Biden are expected to hit US wallets.
Americans will have to pay $177, about 17% more to heat their homes than last winter’s prices, according to the National Energy Assistant Directors Association.
This is the highest price homeowners will have to pay in more than 10 years and the second year in a row that prices are expected to rise significantly, rising more than 35% since 2020.
Gernot Wagner, a climate economist at Columbia University, said some of the drastic rise in prices could be attributed to Russia’s ongoing invasion of Ukraine.
Wagner says dependence on oil, coal and gas means Americans will be at the mercy of price swings caused by outside factors.
US homeowners are estimated to be paying $177, about 17% more for heating than last winter
Biden administration aims to tackle soaring prices with Cut Inflation Act, which will offer tax cuts for ‘new energy-efficient homes’
The Cut Inflation Act ‘has been touted by the White House as ‘the most aggressive action to tackle the climate crisis in American history’
“Putin’s invasion of Ukraine on February 24 has a lot to do with it, not exclusively. There are many other factors at play,” Wagner said. Weather Fox.
“As long as we depend on commodities, like oil, coal and especially gas in this case, to heat our homes or power our economy, we will be vulnerable to their price fluctuations,” he said.
Wagner believes the only way to rid Americans of high heating bills is to rid ourselves of our addiction to fossil fuels.
“The answer is, and has been for a long time, to ditch fossil fuels,” Wagner said. “We live in inflationary times.”
The Biden administration aims to tackle soaring prices with the Cut Inflation Act, which the White House calls “the most aggressive action to address the climate crisis in American history.”
While the bill covers many areas of the rising inflation crisis, the administration aims to tackle bloated heating bills by expanding “tax credits for energy-efficient commercial buildings and new homes.” energy efficient”.
Tackling inflated fossil fuel prices “requires a lot of investment, and that’s exactly where the Inflation Reduction Act comes in,” Wagner said.
Gernot Wagner, a climate economist at Columbia University, says the main way to fight utility cost inflation is to reduce reliance on fossil fuels
Mark Wolfe, executive director of the National Energy Assistance Directors Association, said “rising home energy costs this winter will put millions of low-income families at risk.”
Unfortunately, the immediate effects of rising costs will be felt hardest in low-income households, according to a statement from NEADA Executive Director Mark Wolfe.
“Rising home energy costs this winter will put millions of low-income families at risk of falling behind on their energy bills and having no choice but to make tough decisions between paying for food, medicine and rent,” Wolfe said.
Earlier this month, NEADA sent a letter to Congress asking for $5 billion to help top up the Low-Income Home Energy Assistance Program to help cover the high cost of home heating.
According to the program’s website, the assistance program aims to “keep families safe and healthy through initiatives that help families with energy costs.”
Wagner says the degree to which our homes are cooled during the summer is directly related to the cost of heating our homes during the winter.
“Our electricity network runs partly on natural gas. If we burn more natural gas in the summer to cover power spikes due to extreme heat, that also contributes to higher natural gas prices in the winter,” Wagner said.
He says the electrical grid in the United States needs to be decarbonized in order to begin the process of reducing costs, as well as insulating homes to reduce the need for heating during the winter.
“The ultimate solution to fossilflation is to ditch fossil fuels. It’s about investing in alternative fuels,” he concluded.
Treasury Secretary Janet Yellen says inflation will ‘certainly’ come down by NEXT YEAR – but denies the US is in a recession because the labor market is so ‘tight’
Treasury Secretary Janet Yellen said on Thursday that inflation will “definitely” come down by next year, but denied the country was going into a recession because the labor market is so “tight”.
“A full-scale recession is a time when there is excessive unemployment. You don’t have a strong job market,” Yellen said during an appearance at the Atlantic Festival in Washington. “We really have one of the tightest labor markets we’ve had in American history.”
The Atlantic’s Ron Brownstein asked him if inflation will be brought under control by the end of next year – or if it could become a theme in the 2024 presidential election.
“I think it’s going to go down, definitely next year,” she told Brownstein. “Let’s be clear, there are risks.”
The example she gave was whether Russian President Vladimir Putin continued his attack on Ukraine.
“I think it will be better,” she said. “Maybe we’ll pass next year, but I certainly expect inflation to come down.”
Treasury Secretary Janet Yellen said on Thursday that inflation would ‘certainly’ come down by next year, but denied the country was going into recession because the labor market is so ‘tight’
Janet Yellen (right) was asked by The Atlantic’s Ron Brownstein (left) if inflation will be brought under control by the end of next year – or if it could become a theme in the presidential election from 2024
At the peak of her appearance, she recognized how troublesome inflation had become.
“So first of all let me say that I think inflation has reached unacceptable levels,” she said. “This is a huge problem for every American household. This leads to a great sense of economic insecurity for Americans. And we don’t want to see it become endemic.
Yellen, 76, then recalled her own experience of life in the 1970s.
“It’s President Biden’s top economic priority to get it down, and that’s what the Fed is trying to do,” she said.
She blamed inflation on a number of things.
Supply chain bottlenecks related to the COVID-19 pandemic.
“And Putin’s totally unacceptable and immoral war against Ukraine has led to the escalation of the energy and food crisis which is also contributing to inflation,” she added.
Yellen said the administration has taken steps to facilitate supply chains and release oil from the Strategic Petroleum Reserve.
“But we also have a very tight labor market,” she said.
“Right now we have two job openings for every unemployed person, and I think that puts inflationary pressure on the system,” she later explained.
She also said she believed there was a way to bring inflation down without cutting workers’ wages.
“Now I believe there is a path through this that can successfully bring inflation down while maintaining what I think we would all consider to be a strong labor market,” Yellen said.