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Government Pushes Up Prices

Recorded on February 16, 2011

It's time for common sense; I'm Ernest Istook.

Higher prices are hitting.

Gasoline is setting records; food prices are soaring; and clothing expenses are predicted to go up sharply.

What's going on? Droughts in places like Russia, China and Argentina and floods in Australia have hurt harvests. We can't do much there. But the second culprit is government—and it's out of control.

Restrictions on drilling in the U.S.A. put us at mercy of the oil cartels; the mandates for ethanol are diverting 40% of corn and caused its price almost to double in the last six months, rippling through the food supply chain. Clothing is about to go up because weather hit cotton crops hard, so makers are using more synthetic fabrics. Guess what the synthetics are made of? Why, they're based on oil—and our government keeps making that more expensive.

For common sense, from The Heritage Foundation, I'm Ernest Istook.