The apparel decline offsets big increases in the two preceding months. The tobacco hike reflects the continuing state settlement. Years of abnormally low energy prices caused Americans to become complacent. Low oil and gas prices made exploration and development unprofitable, while utility deregulation distracted the market from building power plants. The market will solve the problem, but the solution may involve more volatile prices than the public is willing to tolerate politically.
Deregulation is on hold, and reregulation is being considered in some states.
The President's proposal concentrates on increasing the supply of production, refining, and generating capacity. Reduce restrictions on construction of refineries and power plants, with a shift toward encouraging coal-fired plants. Remove restrictions on interstate pipeline and transmission line construction. Streamline the permitting process, at the EPA especially. Expand hydro and nuclear, establishing a deep geological repository for spent nuclear fuel.