One of America’s top bankers told President Biden the U.S. needs a “Marshall Plan” for energy production in light of surging oil prices. Higher energy costs threaten to worsen already high inflation and could even trigger a recession.
The Marshall Plan was a multipronged U.S. strategy after World War II to rebuild Europe, help modernize its economy, and block communism from taking root in the impoverished and war-torn continent.
The U.S. spent the equivalent of more than $100 billion in today’s dollars to finance the ambitious program at the dawn of what became known as the Cold War. The program was the brainchild of Gen. George C. Marshall, the former Army chief of staff and secretary of state.
With a new cold war of sorts emerging after Russia’s invasion of Ukraine, JPMorgan Chase CEO Jamie Dimon reportedly urged Biden on Wednesday to craft a similarly ambitious strategy to ensure energy independence for the U.S. and Europe.
A new Marshall plan would entail increased production of U.S. 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 cleaner sources of energy, but it’s also been trying to reduce U.S. reliance on fossil fuels in response to the threat of climate change. The U.S. is the world’s biggest oil producer.
Europe is especially reliant on Russian-produced oil and natural gas. Prices have spiked both in Europe and the U.S. after the attack on Ukraine and the ensuing sanctions imposed on Russia. High energy prices could even threaten recession.