Philippe Herlin, economist, author of the
Thomas More Institute's note “
Cancel economy: why the energy transition is an economic disaster
”.
It is therefore an "inflation allowance" of 100 euros that will receive in December the French earning less than 2000 euros net per month (the median salary), a kind of additional Christmas bonus, but more widely distributed since it will benefit to 38 million of them. As Jean Castex explained Thursday evening on TF1, a premium reserved for motorists only would have been
"a gas plant"
and, as all prices increase, including food, as much to expand the premium. The average motorist who drives 14,000 kilometers per year, explains the Prime Minister, must face, according to his calculations, an additional 80 euros to fill the tank of his car. He is supposed to find his way around but, as all prices rise, he will ultimately lose.
The main limitation of this “inflation compensation” is that it occurs at the end of the chain and that no response to the causes of the increase in fuel prices is provided.
Philippe Herlin
However, the main limitation of this “inflation compensation” is that it occurs at the end of the chain and that no response to the causes of the increase in fuel prices is provided.
Beyond the restart of the global economy and the shortages, which partly explain this pressure on prices, a deep and lasting cause is rarely cited: the printing press of the central banks of Europe and the United States.
The balance sheet of the European Central Bank (ECB) has grown from less than 5 trillion euros before the first confinement of 2020 to more than 8 trillion today, thus representing 77% of the GDP of the euro area, in order to redeem the debt of countries in deficit, including France.
All these euros and dollars created by a simple writing game make labels waltz, commodity holders anticipate a loss of value and reassess their prices.
By increasing the deficit (the measure will cost 3.8 billion euros), "inflation compensation" actually contributes directly to inflation ...
Read also "Why we must lower fuel taxes"
But a more specific cause is added concerning the cost of fuel: the fight against global warming and the desire to reduce CO2 emissions by 55% by 2030, an objective defended by the European Commission, the government, and recalled by Emmanuel Macron. And those who will have to absorb most of this effort are households.
The industry depends on processes that cannot be changed overnight: the manufacture of aluminum, for example, requires a lot of electricity (that's how it is, we have not found a more economical way) as well as agriculture (the only room for action is to reduce meat consumption). The only real room for maneuver lies in households, through their travel and accommodation. It is therefore on them that we must act (or hit, it depends ...), hence this movement of magnitude towards the electric car (ban on the construction of cars with thermal engines in 2035) as well as the fight in a forced march against "thermal strainers", and even now against the individual house as such (
"an economic, social and ecological nonsense"
, for Emmanuelle Wargon, Minister of Housing, who has since operated a tactical withdrawal).
Another government has proposed a better solution to fight against this rise in energy prices: the postponement of the European Union's climate plans.
This is the Polish government.
Philippe Herlin
Electricity is becoming more and more expensive because of this “energy transition”, a consequence of the fight against global warming. Wind turbines must be subsidized to be erected, the consumer will pay for them in his bill. Purchasing power is already suffering and this is only the beginning: among the 20% of the poorest households, energy represents 15.9% of income - it is in the order of 10% for middle classes. Nuclear power provides us with cheap electricity, but the additional costs of wind power will swallow up this advantage and the bill will be increasingly salted.
We must
"be less dependent on fossil fuels"
recalled Jean Castex and this involves the "carbon tax", that is to say the increase in the cost of these energy sources to switch to electricity. In fact, France has long anticipated the carbon tax on gasoline since it is already subject to considerable taxes, amounting to 60% of its price at the pump. But they will not decrease, recalled the Prime Minister: it would go against this objective, from which we can only turn away somewhat during an election period.
Households who depend on it will also suffer the full brunt of the upheaval that will be experienced by the automotive sector, which will be largely sacrificed, in particular to the Chinese competition which will be able to surge in Europe with its electric models.
And beyond that, all households will see their purchasing power seriously undermined by the crazy spending that the government will have to incur for this energy transition: it is the decline that is on the horizon.
Read also "Inflation allowance" of 100 euros: the answers to your questions
Another government has proposed a better solution to fight against this rise in energy prices: the postponement of the European Union's climate plans. This is the Polish government. Here is an action which acts in depth and on the causes. It is necessary to question the urgency of this anthropogenic global warming, for which only models, those of the IPCC, but not yet an irrefutable scientific demonstration speak. A model is not proof, it is not infallible: epidemiologists and economists have repeatedly shown it reluctantly. This does not mean that there is nothing to be done in environmental matters but the return of reason in these matters would be welcome. Let’s continue to research andanalyze rather than assault.
But then why does this “energy transition” have so much force in our political field, and lead to so few questions?
Because it calls for and legitimizes an all-out intervention of the State and that this corresponds to the deep culture of our political class, from Marine Le Pen to Jean-Luc Mélenchon, from Emmanuel Macron to the LR candidates, from Yannick Jadot to Anne Hidalgo, who all defend with barely masked gluttony this fight against a global warming which always justifies more bureaucracy, standards, taxes, subsidies, patronage, public spending: paradise for a politician!
The French have not finished suffering.
