I am perhaps a
sad case. I am an unemployed geologist, nearly 61 years of age, just waiting
for the day I can access social security. I am currently living on savings and
a 401K account that fluctuates with the stock market. I have worked all my
life, making excellent money in some years, so my SS should be enough to keep
my head well enough above water. I would like to work, but there are no
suitable jobs in my area. I don’t want to move, and while I am still looking,
opportunities are quite scarce, even for menial jobs. My last job required an
hour-long commute every day, did not pay that well, and I did not really like
my co-workers, to be honest. I liked some parts of the job, but not others. I
was basically starting over at the bottom at 60, although I did get a few
dollars an hour more due to my 34 years of experience in a professional
capacity. I have interviewed for several state jobs in two states, but the
interview process for those jobs is ridiculous, since they only ask very
specific questions about the job at hand, with no general knowledge considered.
One of my last interviews was in front of about ten people, so it was a bit
intimidating. It was for a job that paid less than Canadian minimum wage (about
$17.75/hour), and while I was not wholly suitable, mostly overqualified, I was
willing to do it. I was also told that the job may not actually exist due to
DOGE cuts. I didn’t hear back. Although I may be a sad case, I do enjoy life
and learning about new things every day, researching and writing about them
here on my blog that nobody reads. It is strange, perhaps, but I don’t
mind.
The reason I give my story is
to show that affordability is now top of mind for me. This was not always the
case. When I was regularly making “six figures,” I didn’t worry much about it.
Now, I have become a lean, mean penny pincher. I have been successful at being
frugal, and I have enough of just about everything I need. Every day I enjoy
that I can get enough sleep (much harder when you are working, since every job
I’ve had required some overtime), eat right (often not easy when working), and
have time to exercise. I also have time to work on many projects, including
this blog. These things improve my health, so I am grateful. I can afford to do
most of the things I want to do, for which I am also grateful. Of course, there
are also many other things I would like to do, but can’t afford to do, which is
a bummer, but not too much of one. I am lucky that my house and land are paid
off, my car, though old, is paid off, and I don’t have many bills, mostly
utilities, car insurance, and property taxes. I have no health insurance, which
is concerning, but I am in general good health. I have just enough for
emergencies and things breaking down, at least I think I do. I do drive and
travel less than I would like to keep my car from deteriorating, since it is a
2010 hybrid with the original battery. I am quite concerned with rising power
costs, and my house is colder than most in the winter and warmer than most in
the summer. I have had to eliminate some wasteful spending. I am quite thankful
for discount stores like Dollar Tree, Ollie's, etc. OK, that is enough about me
and my current personal relationship with affordability.
The cost of energy, in
particular, is a key to affordability since when energy costs change, the cost
of everything changes, although it mostly happens when energy costs rise. The
same is true of materials cost, although higher energy costs can be the cause
of increasing materials cost. Luckily. Right now, gasoline costs are not high.
That really helps. Thanks to OPEC producing more to keep its market share, we
are paying less for gasoline and diesel. There are other factors, too, but that
is a big one.
The graph below from energy
consultant Art Berman shows how food costs change in tandem with energy costs.
Food costs really don’t seem to be stabilizing or coming down, and I have had
to eliminate several items that I like due to cost increases. I am glad there
are cheaper alternatives in most cases.
Health care costs are also
considerable for Americans and many people around the world. Those faced with
double to quadruple bills for Affordable Care Act premiums make those premiums
unaffordable for many, even if those increases are due to suspension of
expanded coverage due to COVID. The number of people insured will certainly
drop. I heard on a radio piece that in Ohio, it is conservatively estimated
that well over 100,000 people have dropped medical coverage due to the cost
increases, with more expected. It is certainly a worry for many, especially if
they have medical issues that require healthcare. As noted, I’m almost 61 with
no healthcare and none expected till I hit 65 and become eligible for Medicare.
Trump has indicated he wants
a 10% credit card interest cap. Progressives like AOC have called for such caps
in the past. I concede that credit card companies should not be able to overly
exploit those who take financial risks or those who may be desperate. Credit
card interest is meant to penalize those who can’t pay in full and to give the
same people the opportunity to defer payment. One proposed problem with the cap
is that it can close credit card rewards. They reward those who pay each month.
As someone who has paid a credit card off each month for nearly 35 years, I can
say that I have benefited from those rewards. Though quite small these days, it
is a nice extra income stream that I apply to my balance. I would hate to lose
it. Liberal economist Paul Krugman thinks that Congress should revive the
Consumer Protection Bureau and address credit card issues like exorbitant late
fees and cap interest rates. He does have a point, though I would hate to lose
my reward points.
Another area where
affordability has become a major concern is electricity prices. As a record
snow and ice storm looms, followed by a week of frigid temperatures, I must
admit I am concerned. High power prices due to increasing demand, passing on
the costs of renewables buildout and integration, inadequate gas plant
buildout, and electrification are leading to changing decisions among
policymakers. The costs of decarbonization are coming under more scrutiny as
the costs of electricity rise. I have long argued that we should slow down
decarbonization a bit and wait for improved technologies and better economics.
U.S. states are also
abandoning and scaling back climate policies due to high power prices. Alex
Trembath writes for Ecomodernist in an article entitled: Environmentalism
vs. Affordability in New York, that affordability agendas are becoming more
common among politicians:
“…New York Governor Kathy Hochul, who has reversed her
state’s position on nuclear energy and natural gas pipelines while pursuing
permitting reform and new AI data centers. It could mark a new dawn for
affordability-minded Democrats, if they can navigate the deepening tensions
with their erstwhile allies in the climate movement.”
Trembath suggests
that it was the popularity of climate activism in the mid-late 2010s and into
the 2020s that led to the implementation of climate policies like those in New
York, which many have called aspirational, ill-advised, or even nonsensical. I
think it’s fair to suggest, as he seems to, that Biden was even more in line
with the activists than Obama. This climate push was exemplified, he says, by
mostly proposed, but some enacted, bans on internal combustion vehicles and
natural gas hookups. The activists argued that the dropping costs of solar and
batteries meant that it was time to ditch fossil fuels. That was always a
flawed argument, he says, and he is obviously correct. More accurately, it was
an insane calculation with nothing to back it up. The arguments to do so were
economically and logistically preposterous. He mentions a December 2025 article
in the Wall Street Journal titled: “The Climate Crisis Clashed With
Affordability, and Affordability Won.” That title pretty much explains how
that went down. He also cites rollbacks of proposed legislation and
Pennsylvania Governor Shapiro’s taking the state out of the local carbon
market, the Regional Greenhouse Gas Initiative, as more evidence of the return
of affordability concerns.
Trembath goes on to say that
Hochul even framed her affordability agenda as a return to an
“all-of-the-above” energy strategy akin to the Obama days.
“But Hochul’s agenda goes far beyond one pipeline. This
year, she has also reversed former Gov. Andrew Cuomo’s policy of opposition to
nuclear energy, directing the New York Power Authority to build a new nuclear
plant upstate. Her administration has also streamlined permitting of electric
power and transmission infrastructure and established the Empire AI Consortium,
a $500 million public-private partnership to advance power-hungry AI capacity
in New York.”
Bill McKibben called it “inexplicable,”
but the rest of us would call it doing what needs to be done to keep power
available, reliable, and affordable.
References:
The
False Promise of Enhanced Geothermal. Art Berman. Blog. December 3, 2025. The False Promise of Enhanced
Geothermal | Art Berman
Environmentalism
vs. Affordability in New York. Alex Trembath. The Ecomodernist. January 7, 2026.
Environmentalism vs. Affordability in
New York
Nobel
economist Paul Krugman says there's one big way Trump could really improve
affordability for Americans. Samuel O'Brient. Markets Insider. January 15,
2026. Nobel economist Paul Krugman says
there's one big way Trump could really improve affordability for Americans
No comments:
Post a Comment