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To: central_va

Just curious (seriously) have you ever take Micro or Macro economics? Economics 101.

Because I promise you that you are very very wrong. And I wonder if you just thought this up? Or learned it in some class.

Because as a business major (before I became a Physics and Computer Science major) I wonder how on earth you came to think these two very different points.

1) that increasing the gas cost 50% is divided in to everything to make it a ‘miniscule’ amount.

and

2) increasing gas cost is absorbed by the trucker, decreasing his profit.

Both of those are so very incorrect.


18 posted on 05/04/2021 1:02:24 PM PDT by Mr. K (No consequence of repealing obamacare is worse than obamacare itself)
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To: Mr. K
Do you know basic math?

Let's say a truck transports 100 new riding mowers which retail for $2,000 each. The value of the cargo is $200,000. Before the hike he used $200.00 of fuel. Now $400.00 of fuel. So per mower that is $2.00 increase in the transportation cost per mower.

So as a percent $2/$2000 = .1% per mower. Nothing.

21 posted on 05/04/2021 1:04:05 PM PDT by central_va (I won't be reconstructed and I do not give a damn...)
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To: Mr. K

Yes, rising fuel costs will noticeably inflate the majority of most frequently purchased, lower priced products like groceries and cheap hardlines. The costs of drivers are up, and there’s already terrible inflation in other necessities like building materials.

Some of the import items are held up at ports. There’s a rumor from sales reps for importers, that exporters overseas are holding out for higher prices on some of their products while blaming overseas epidemic lockdowns (not happening for weeks). Looks like some of those foreign exporters are trying to expand their currency’s reach and maybe even raise it.

I’m guessing stagflation with higher interest rates before long, but I don’t know.


47 posted on 05/04/2021 2:54:40 PM PDT by familyop (Only here for the tales from the rubber room.)
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