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Economic repercussions. Cost of gas.
pickenup
Member Posts: 22,844 ✭✭✭✭
The economic implications of gas reaching $4.00 (or more) goes far deeper than some people realize. Consider, almost everything you have, eat, drink, or use, was brought to you by truck. (for the people living "next door" to the manufacturing plant, that are inevitably going to say, NOT ME. Of course there ARE a few exceptions)
From the food you eat, being delivered to the grocery/convenience store, to the gas being delivered to the gas stations. New TV, DVD, stereo, camera, shirt, pants, shoes, school supplies? To the materials used to build your house. Oil, tires, antifreeze, windshield wipers, for your car/truck, almost everything moves by truck. Most items, more than once.
Look at the last few months/years. As the price of fuel has been rising, many of the smaller truckers have been forced out of business because they couldn't afford fuel. This happening when fuel prices were between $2-3.00 a gallon. When the price goes over $4.00 to maybe $5.00, or higher?? What do you think is going to happen to even MORE of the big rig owner/operators?
This is going to leave most of the hauling to the bigger companies. Do you think they are going to swallow a DOUBLING (or more) of their cost for fuel? One of the main costs of doing business? I don't think so. They are going to charge the companies more for hauling their inventory. Who do you think "that" cost increase will be passed down to?
Enough about the commodities trucks, how about your postal system, UPS, Regional Transportation Districts (RTD) School buses, cab drivers, gas, water, and electric meter readers, line men, even your trash man. ALL of these people are going to have to raise their prices, as very few can take the hit of paying double for the fuel they NEED to stay in business. Prices on EVERYTHING will be going up.
Will food be harvested, or next year, even planted? Most farmers have a huge expense, when it comes to fuel. Anyone who knows anything about farming, knows that most operate on a pretty tight budget as it is. Small as well as large operations will be hurt by this. Some could be devastated, to the point of throwing in the towel.
Individually these increased costs might be manageable, but accumulatively the rising price of gas will effect us all in a multitude of ways. With the fragile economy that we are currently in, this could prove to be catastrophic. (Oops, they say the economy is doing great, but if you believe that, I have heard that Merc has some beachfront property for sale in AZ.)
The gene pool needs chlorine.
From the food you eat, being delivered to the grocery/convenience store, to the gas being delivered to the gas stations. New TV, DVD, stereo, camera, shirt, pants, shoes, school supplies? To the materials used to build your house. Oil, tires, antifreeze, windshield wipers, for your car/truck, almost everything moves by truck. Most items, more than once.
Look at the last few months/years. As the price of fuel has been rising, many of the smaller truckers have been forced out of business because they couldn't afford fuel. This happening when fuel prices were between $2-3.00 a gallon. When the price goes over $4.00 to maybe $5.00, or higher?? What do you think is going to happen to even MORE of the big rig owner/operators?
This is going to leave most of the hauling to the bigger companies. Do you think they are going to swallow a DOUBLING (or more) of their cost for fuel? One of the main costs of doing business? I don't think so. They are going to charge the companies more for hauling their inventory. Who do you think "that" cost increase will be passed down to?
Enough about the commodities trucks, how about your postal system, UPS, Regional Transportation Districts (RTD) School buses, cab drivers, gas, water, and electric meter readers, line men, even your trash man. ALL of these people are going to have to raise their prices, as very few can take the hit of paying double for the fuel they NEED to stay in business. Prices on EVERYTHING will be going up.
Will food be harvested, or next year, even planted? Most farmers have a huge expense, when it comes to fuel. Anyone who knows anything about farming, knows that most operate on a pretty tight budget as it is. Small as well as large operations will be hurt by this. Some could be devastated, to the point of throwing in the towel.
Individually these increased costs might be manageable, but accumulatively the rising price of gas will effect us all in a multitude of ways. With the fragile economy that we are currently in, this could prove to be catastrophic. (Oops, they say the economy is doing great, but if you believe that, I have heard that Merc has some beachfront property for sale in AZ.)
The gene pool needs chlorine.
Comments
There are HUGE fuel inputs required to raise that loaf of bread you eat. Unfortunately, the farmers are not going to get their fair share.
Maybe people will learn how to cook again with the basics and not out of a box or can.
That said, I think gas rations are coming back if supply stays cut. I also think that $4, $5 a gallon might be enough to jab lazy politicians into work to get more refineries built, and drill in anwar, the great lakes, etc.
"...hit your enemy in the belly, and kick him when he is down, and boil his prisoners in oil- if you take any- and torture his women and children. Then people will keep clear of you..." -Admiral of the Fleet Lord Fisher, speaking at the Hague Peace Conf
God I love living in a country where big corporations can screw the public like this, and the idiot public DEFENDS THEM!
Merc
"You can get more with a kind word and a gun than you can with a kind word alone. " - Al Capone, (1899-1947)
"Tolerating things you may not necessarily like is part of being free" - Larry Flynt
http://www.wjla.com/news/stories/0805/255816.html
R/
Dave
People everywhere confuse what they read in newspapers with news.
-- A. J. Liebling
I halfway agree with you; the small, family farmers will be in trouble. But bet your * that agribusiness corporations will be just fine. Their profits will rival the oil companies.
I think I'll pickup a hundred pound sack of pinto beans at the grocery store this week!
9-11 is coming up. if they do something to us again the US economy will fold.
Good thing is China imports will cease. small time shops will open up in peoples garages making goods for alot cheaper than it could be shipped over here. Likely only way many will be able to find jobs...working for themselves.
Anyone think the Liberty Dollar will replace the US dollar?
Being in the resatuarant repair service business, FEMA has requested us to send any avilable help to the New Orleans area.
Saying they would like to have at least 20 of our techs, with a full inventorty of parts and equipment.
FEMA is also willing to take our service vehicles via US military aircarft as part of the deal.
FEMA has not disclosed, the pay rate, nor who is paying for this, or how we are to collect for repairs.
So we are not sending anyone until FEMA, gets its crap together.
Walte
You are completely mistaken about being able to make stuff here cheaper than in China. You can't even buy the *materials* here in the USA for what the finish product costs in China!
If people *really* knew what stuff cost in China, they'd soil themselves. I import stuff......and even I go "how can it be that cheap" sometimes....
Merc
"You can get more with a kind word and a gun than you can with a kind word alone. " - Al Capone, (1899-1947)
"Tolerating things you may not necessarily like is part of being free" - Larry Flynt
forgot how silly cheap China junk is, keep looking at Harbor Freight catalogs and can't believe they keep slashing prices to what they got today.
Heck you can get a cement mixer for a little over $100.
It's the shipping thing though that is going to kick in. Still if it cost $100 to ship it, you are right that it is still cheaper than US Made.
Of course, it is too bad that the $100 Cement Mixer is a piece of JUNK that'll last about 1 day. [:D]
Merc (who sells those same cheap crappy tools......it's what the people WANT!)
"You can get more with a kind word and a gun than you can with a kind word alone. " - Al Capone, (1899-1947)
"Tolerating things you may not necessarily like is part of being free" - Larry Flynt