Weber and Wasner tell a different story, drawing on economist Abba Lerner’s concept of “seller-driven inflation.” Some initial shock—say, a war or supply chain problems—gives companies an excuse to raise prices. Competitors are doing the same, not wanting to be left behind in a world where consumers are willing to pay more. This is amplified through supply chains as inputs for production also become more expensive. The final stage, they argue, is conflict: when workers, fed up with the ever-increasing cost of living, try to protect their purchasing power by demanding higher wages. Unlike the usual story of inflation, where inflation is caused by the increased bargaining power of workers, Weber and Wasner (among others) describe it as a consequence. Instead of trying to keep workers from raising interest rates, they argue that price controls in key sectors – a tool once more used by economic policy makers and long demonized by leading economists – can help uncover the root causes of inflation. not its symptoms. .

Not only leftist economists agree with this. Albert Edwards, strategist at French bank Société Générale, warned recently that “greed” (profits continue to rise even as costs fall) could “ignite social unrest” and even set the stage for “the end of capitalism.” He referred directly to the paper by Weber and Wasner, noting that price control policies could “become the favored method” of fighting inflation.

Although Darren Woods is extraordinarily rich, he is not extraordinarily evil. He and his peers don’t wake up every morning planning how to make people poorer and destroy the planet. But that’s also no reason to leave the production, distribution, and pricing of something as important as energy entirely in their hands. As Weber and Wasner point out, current inflation may be “temporary”—it low tide— but the climate crisis promises new upheavals in the real world, whether it be hurricanes knocking out key infrastructure or causing drafts. shipping channels dry up. Ordinary “inflationary cycles” can become horrendous: as climate-induced shocks give oil and gas executives a reason to demand more from consumers and governments, the emissions they generate around the world threaten to cause even more climate shocks and inflation.