America’s farmers and truckers are the backbone of the nation’s food supply system, and without them, the country would starve. Two years of Biden’s war on energy producers have pushed prices for their most important input—diesel fuel—to heights unseen in history.
Breitbart’s Simon Kent reports that if prices don’t fall faster, truckers may decline jobs that lose them money, and the effects on farmers will hurt consumers as well. He writes:
Unless prices ease, the ripple effects of high diesel fuel could worsen because the costs are deterring some truck companies from accepting jobs unless they can persuade their customers to bear the added cost of more expensive fuel, the AP report sets out.
“There will be more logistical shortages,” said Phil Verleger, a veteran energy economist. “Americans will find more empty shelves and higher prices.”
“If you’re a farmer, then your energy costs are higher, and therefore it’s costing more to produce grain, and that’s pushing the price of grain up, and that’s pushing the price of food up,” observed Matt Smith, lead oil analyst at Kpler, a research firm.
Even more than gasoline, elevated diesel prices are magnifying the costs of goods because the delivery cost has risen so much.
Consumer prices soared 9.1 percent in June compared with 12 months earlier, the government reported last week, and the overall link to fuel prices is evident.
High diesel costs elevate the prices of everyday goods, since the higher cost of transportation is often passed down to consumers. In turn, consumers restrain their spending habits at grocery and other retail stores, slashing demand and exacerbating an economic slowdown.
Action Line: The economic outlook is always dicey when truckers and farmers are facing trouble. Make sure your family is prepared with an investment plan that takes inflation into account. If you need help building a plan like that, get in touch with me. If you want to stay in touch with me, click here to sign up for my free monthly Survive & Thrive letter, and I’ll help you build a financial survival plan for the future.