I lived/worked through the inflationary period of the 1970's and remember that, although there was indeed a lot of inflation, wages went up close to the same rate as prices...so consumers didn't really lose any purchasing power. However, we now live in a world of >9.0% unemployment (>16% if you include enderemployment) and our economy is service based so I don't think the purchasing power of employees is going to be "in step' with price increases this time. That means consumers will have to make choices (as Swonk says in the article)...and that won't be good for the economy.
I can tell you there were a LOT more jobs in the local sunday paper this week than in previous weeks. Seems like things might pick up a bit.
Also, how come OPEC is not a major topic these days? They were in the news the other day, basically taking the Goodfellas approach to setting the price/brl (F--k you, pay me). Shouldn't the energy independence advocates on the right be making big hay about stuff like that? Or are they truly owned by the Saudis?
Much of the result of the ever increasing gas prices is the value of the dollar. China and Russia no longer trade in dollars. The Chinese - now King of the mountain - are already suggesting trashing the dollar for the Yuan as Global Currency. There is a glut of oil on the world market and much of the US oil is out of bounds because of government’s outright banning or overly burdensome rules and regulations. Every mentionable alternate energy source which is already heavily subsidized is much more expensive than oil. Wait till we have to buy oil with Yuan.
Who said reporters can't do math?? :rolleyes:
When gasoline was 3.25/gal in NY in December, it was an extra 10 dollars per fillup from this summer, up 0.25/gal. Gas is now 3.50 a month later so that will be an additional 20/fillup.
In 2008, the rise in price started in the winter and peaked in the Fall just before the election. I always suspected George soros and his cartel buddies were running up the price to affect the election, especially when you could see the tankers full (riding low) on oil sitting off the Arthur Kills. Now I am not sure who is pushing the prices but I know if Obama said we need to drill now in Anwar and the Gulf, the price per barrel would drop $20 but that fantasy will never be.
I too remember the 70’s (both after the Yom Kipur war and then again thanks to Jimmy Carter’s energy policies/politics) waiting an hour in line for 8 gals and didnt care what it cost (here take my wallet), just so you could get to work for the next few days. I hear Archie and Edith screeching “Those were the days”
Wait ‘til gas hits $4 or $5 A gallon and a pound of hamburger is $7.
We started combining our trips to the grocery store, paying bills, etc. back when the prices went up so much the first time a few years ago to keep from having to buy extra fuel and we still do.
It’s bad enough we are being hit with the increase in the price of oil in the form of higher groceries and electricity costs. Not gonna give em one cent more than I have to.
Another thing I noticed at work is all the companies that placed a “fuel surcharge” on their invoices back then never changed them when the prices went back down.
Sarah’s fault.
Real American CITIZENS, will not be DE-SENSITISED to higher prices.
Real American CITIZENS, will not “play the game”, until free spending and insulated salary hikes to D.C. bureaucrats and “industry” lobbyists stop.
What planet are you on? Gas prices have gone up almost 50 cents a gallon since the fall.
I've been cutting back already and I've also been stocking up on groceries and non-perishables, because they'll be going up soon enough.
It took a cheif economist to figure that out? Out her in CA where we pay some of the highest prices for gas and travel some of the longest distances, its going to have an impact among those that work for a living. I am far from strapped but I don’t like the price of gas one bit when it should be and can be cheaper. The powers that control the price of fuel in my opinion are no better than drug cartels. ANd we have a clown in the WH that thinks this is great.
“I lived/worked through the inflationary period of the 1970’s and remember that, although there was indeed a lot of inflation, wages went up close to the same rate as prices”
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Either things were much different where you lived or you have a very bad memory. I was getting about eight percent more every year and it was not nearly enough to keep up. By the time things were under control I was barely scraping by with the same basic situation that was very easily manageable at the start. Now wages are falling so nobody can keep up.