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I was watching CNN last night and the discussion was about how everything in our economy is tied to oil/gas prices. It's not just the effect of what you're paying at the pump - if oil prices go up consumers feel the pinch just about everywhere. Food, consumer goods, etc. will have increased costs that get passed on to the consumer.
If we see the price of oil continue to rise, the people that will get hurt the most are the ones living paycheck to paycheck. If you don't have an emergency fund stashed away, it's more important than ever to start building one. You don't want to be one of the households that has this be the tipping point into complete financial ruin.
(I don't mean to be an alarmist, just want you all to be prepared!)
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I totally agree. As soon as the gas prices went up here in Chicago, grocery prices went up. Milk went up $0.50/gallon. It's very scary to think what might happen if this trend continues. You have to think that the trucks that make these deliveries, especially the refrigerated ones, have to pay alot more just to make the delivery.
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well, isnt plastic a byproduct of Oil? if so then the price of plastic goes, up then all containers cost more for food comapnies, so food prices go up. There are a lot of items that are made from Oil. Also items need to be transported and the trucking comapnies will charge more to transport, who foots that bill, us!
We end up paying for it in many more ways than one
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I think at the same time it might be a good thing. Would it not give buisnesses more reasons to try and use alternitive fuels to keep prices down. I think as prices go up we all will just try to be a little less wasteful. I know with most consumer goods you can find ways to make things more cost effective. I am working on an e-fund even though it is only $100 a month that we can contribute.
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It stinks!!! It really does. What makes it worse is that those paychecks we are barely living on aren't rising with the prices of everything. That is what really bothers me. I don't follow the news like I should and I may be totally wrong in this and please feel free to tell me if I am...but as I understand it, aren't they talking about raising the minimum wage??? That's great for those just starting out or for those that are on minimum wage, but what about the rest of us?? until they raise everyone elses wages to reflect the minimum wage increase, that means SQUAT to me!!
I don't mean to ramble or go off, it's just so frustrating. We have no savings. We have no cushion. We ARE living paycheck to paycheck trying to make ends meet with the rising cost of everything and it just seems that NO ONE cares about that. It's even worse when we have to watch on the news about them renovating some state building (I think the in the capitol) and spending milions to do it. Paying $500 of MY money for a door knob and I have a hard time coming up with $70 for a tank of gas!!! UUGGHHH it just makes me want to scream !!!
(ok...i'm done... getting down now)
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Some of it has to do with the increase in ethanol sales, so the price of corn has gone up. Dairy farmers feed their cows products made from corn, and some are paying double what they did last year for feed. Trickle down effect=price of milk and dairy prices goes up. Think about all the products that have corn syrup as well.
I understand supply and demand but can someone explain to me why the oil companies are making billions of dollars in profits and government doesn't step in and do something about the price gouging? Don't tell me you are making me pay more at the pump because some supply line broke or needs repair. TAKE THE BILLIONS OF DOLLARS IN PROFITS YOU MADE LAST YEAR AND FIX IT.
My raise next month is a joke. It won't even cover the increase I'm paying at the pump and groceries.
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I get so angry when I realize that during this incredible rise in the cost of gasoline that oil company profits are at an all time high!!!
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thats just it the oil prices are not that high compared to the increase at the pump....but ya know people get used to paying the higher amount then when it goes down 10 cents then people are happy and in the end the prices slowly increase and people just get used to it....and start to forget when a year ago they were 2.60 a gallon...of course they are making money and our crappy government goes along with all of this and take simple explanations...as i see it our country is slowly going into the tubes and until somebody in office gets their you know what out of their you know where nothing will change... i better just stop talking about this now the subject just irritates the crap out of me....
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[quote=deemom]
I understand supply and demand but can someone explain to me why the oil companies are making billions of dollars in profits and government doesn't step in and do something about the price gouging? Don't tell me you are making me pay more at the pump because some supply line broke or needs repair. TAKE THE BILLIONS OF DOLLARS IN PROFITS YOU MADE LAST YEAR AND FIX IT.
QUOTE]
You know that is a capatalist economy, the governemt wont touch companies and do you really think Bush will make his big oil buddies mad, by regulating them?
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Did anyone see John Stossel's report on Oil/Gas prices last night on 20/20? It was a good eye opener to see how much of what we believe is media spin.
Namely, gas prices are not at all time highs when adjusted for inflation. They were higher in 1981 than they are now.
A big part of the profits big oil companies make goes to looking for more oil and in following environmental rules
Oil prices aren't set by the oil companies themselves. It's basic economics, says Economist Russ Roberts. "Oil companies don't control the price of gasoline, any more than you or I control the price of our house," he said. "Housing prices have been rising in many American cities over the last five or ten years. It's not because we are greedy, it's not 'cause we are mean. It's because the market -- the supply and demand activities of all the consumers and all the suppliers -- pushes those prices up."
Here's a link: