Last month’s dispute between the International Energy Agency (IEA) and the Organisation of the Petroleum Exporting Countries (Opec) on the link between oil prices and inflation is a red herring. Yes, Opec is wrong on the short-term substance of whether the price of oil impacts inflation. That’s just simple economics. But more importantly it is also wrong on the long-term argument about the necessity of fossil fuels.
Squabbling over whether the price of oil impacts inflation is a dangerous distraction that we can’t afford. The real issue is the fact that we let it impact us at all. That we let oil fuel our economy and subject ourselves to the whims of foreign dictators while we line their pockets. Transitioning from fossil fuels to renewable energy is both an economic and environmental necessity.
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