On the way to work this morning I was greeted at the gas station with a $2.25 per gallon price (I know I know all you european fuckers are like "That's nothing, you wimpy Americans...etc etc" ....) which is 10 cents more than they were yesterday.
Now, since gas in my area got over $2.00 I have been buying $20.00 at a pop instead of filling my tank as I normally would and I imagine other folks are playing that same game. Catch it on the low side, fill up..If it's high, just get enough to gfet through..
Anyway, this got me thinking of the ramifications of all this.
1. Oil goes up.
2. All industries dependent on oil have to raise their prices (this is virtually all industries that have actual tangible goods to deal with)
3. Prices go up, the consumer has to start making smarter choices in order to maintain their standard of living. They have to decide what to do without and what they are willing to spend higher amounts on.
4. For many products, sales start declining.
5. Declining sales lead to lower profits.
6. Lower profits leads to "cost cutting measures".
7. Cost cutting measures include lay offs etc.
8. More people out of work means less money circulating at the consumer level (the most important level of the moneygoround)
9. Less money circulating at the consumer level means less money being spent.
10. go back to 3, continue loop...........
How long till the current economy looks like Jimmy Carter is back in office ?
