One of the top bankers in the United States told President Biden that the United States needs a “Marshall Plan” for energy production in light of rising oil prices. Higher energy costs threaten to exacerbate the already high inflation and may even trigger a recession.
The Marshall Plan was a multi-pronged post-World War II American strategy to rebuild Europe, help modernize its economy, and block communism from taking root in the poor and war-torn continent.
The United States spent the equivalent of more than $ 100 billion in today’s dollars to fund the ambitious program at the beginning of the Cold War. The program was conceived by George C. Marshall, the former Army Chief of Staff and Secretary of State.
With a new Cold War of the kind emerging after Russia’s invasion of Ukraine, JP Morgan Chase CEO Jamie Dimon reportedly urged Biden on Wednesday to work out a similarly ambitious strategy to secure energy dependence on the United States and Europe.
Read: Jamie Dimon tells Biden to the United States that Europe needs the ‘Marshall Plan’ for energy dependence
A new Marshall Plan of this kind would involve increased production of American fossil fuels such as oil and natural gas, as well as efforts to produce more energy from solar, wind, hydrogen and other “green” sources.
The Biden administration is already focused on electric cars and other clean energy sources, but it has also sought to reduce U.S. dependence on fossil fuels in response to the threat of climate change. The United States is the world’s largest oil producer.
Europe is particularly dependent on Russian-produced oil and natural gas. Prices have risen in both Europe and the United States following the attack on Ukraine and the subsequent sanctions against Russia. High energy prices can even threaten recession.
Read: A Russian oil-triggered American recession? That’s how it could happen