Increased Energy and Food Prices Coming Home to Roost

In “Housing Construction Plunges” (Examiner, October 18, 2007), the author, Martin Crutsinger, correctly identifies the reasons for the current problems in the ever-important housing industry: “Consumer prices, meanwhile, rose at the fastest pace in four months, reflecting higher energy and food costs.” He backs this up with the fact that “the Labor Department reported that consumer prices rose by 0.3 percent in September, slightly more that the 0.2 percent that analysts had been expecting as energy prices rose after three straight declines and food costs shot up at the fastest pace since June. Core inflation, excluding energy and food, remained tame, however rising by 0.2 percent.”

This current Congress’s short-sighted ethanol and energy-restricting policies will not only lead to these recessionary pressures, but will work to increase greenhouse gases, as thriving companies are the ones who can afford to invest in expensive energy efficient measures.