alt Hacker NewsSure, if you make oil prices increase, US oil companies and their shareholders rake in more cash. But it's harmful for the average American because filling up the tank costs a lot more. Then that price hike spreads to everything else that relies on oil (which is pretty much everything) leading to inflation and rising interest rates (already starting to happen, the shielding you mention doesn't seem to be working, which makes sense in a relatively free-market economy). If the situation drags on, unemployment rises due to soaring costs across the board, and the economy goes to hell.
A rise in crude prices might pay off for a small country that lives almost exclusively off it (say, Saudi Arabia, in the hyphotetical case that it could keep exporting as normal) but for the US? I don't think it does. Surely, Europe is more exposed than the US and will suffer even more, but this is not a zero-sum game.
So I don't think it's an elaborate plan, it's just Trump being reckless as usual.
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I wouldn't assume this administration gives a shit about inflation or rising interest rates or how the rest of the economy is doing. Do you have any reason to believe they do?
> But it's harmful for the average American because filling up the tank costs a lot more.
The fun part about this is that it shows what people actually care about.
What happens if petroleum prices go up? People use less. It's the entire premise of a carbon tax. Fuel costs more so people buy a hybrid or electric vehicle, power utilities find renewables or nuclear more attractive relative to natural gas, etc. In a market economy this is the primary way to get people to switch from something to alternatives -- which is pretty important if you think climate change is a problem.
This is obviously not why Trump is doing it, but it's the consequence of it anyway. So now we get to see what people care about. Do you like higher oil prices because it speeds up the transition away from fossil fuels, or dislike them because of who it is that caused it this time?