[ithos]

In the last few years not only did the US become energy independent on oil but also was the marginal producer in the world. Based on the proclamations of the incoming administration, existing fracking operations and drilling permits will come under increased regulatory pressure to be downscaled or eliminated. The purpose is to reduce the carbon emissions.

The impact on the economy will be two fold. First the prices of all energy sources will go up which will restrain the growth of the economy and put a disproportionate burden on the poor and lower middle class.

The second and possibly the biggest hurdle to returning to the pre pandemic record low unemployment levels is that the US will lose its primary competitive advantage for manufacturing. This will be a major drag for jobs particularly in the Midwest which had seen a revival of sorts due to not only cheaper energy costs but the USMCA agreement, deregulations and protective tariffs.