Monday, February 20, 2012

I have to wonder, do these econonic geniuses actually think that $3/gallon

gas doesn't affect the economy? What people spend on every-bloody-thing?
Key bit that pissed me off:
The price of unleaded gasoline in the U.S. will likely hit a nationwide average of $4 by this summer, said Dan Dicker, oil trader and author of “Oil’s Endless Bid.” The last time prices topped $4 was 2008 and Dicker said there’s a one in three chance that gas could reach $5 a gallon.

If gas prices do head to those lofty levels, that could put a crimp in the economic recovery as consumers will likely cut down on spending if they have to pay more to fill up their cars.
Bold mine. Because I wanted to emphasize that word.
What the FUCK do you mean COULD? EVERYTHING costs more because of energy costs, people spend less on everything so they can keep the house warm and get to work already! And you say $4 and $5/gallon COULD make it worse? Really? How much hard thought was required to come to that conclusion?

Found over at Ace


Anonymous said...

I'm still unsure about this - seems all we're thinking about is how much it will cost to fill up the tank of our POV.
Seems to me, the most devastating effect of rising fuel prices is the across-the-board increase in consumer goods, food or anything else that has to get from where it is to where you are by truck.
I own a music store, and I'm already seeing the effects - my suppliers charge for shipping, and that's going nowhere but up. I either raise my prices or make less money.
I can walk to work - it's only a mile. But I can't escape the consequences of rising fuel costs.

Firehand said...

Yeah, that's why I said 'everything'; shipping to deliver stuff. The fuel the farmer and rancher needs for tractors and combines and trucks and fertilizer, the places that process the grain and meat, the stores that sell it... the price of fuel goes up, the price for ALL OF IT goes up.

And then we get the joy of having to listen to people who think expensive gas is wonderful because it'll 'force people to be kinder to Gaia' whining about what their food costs now, and heating and cooling and everything else; I don't know if they simply don't understand the connection, or don't WANT there to be one.

Keith said...

Trouble is, there is very little that businesses can do to "pass costs on" as increased prices result in lower sales.

It makes everyone poorer, as then, less goods are produced, and by fewer workers,


if transport costs go up, then, more goods are sourced locally (sounds good but is actually very bad)thus reducing the efficeincy from specialization and division of labour.

as an illustration, imagine if your street decided to buy only goods and services produced by others living on the street.

Sure, their "unemployment" would vanish, and they'd be making far more things than they had ever done before...

But, in truth, they'd be working night and day to inefficeintly produce a few essentials for a subsistance existance.