Is USA headed for economic disaster w/ gas prices?
It seems to me everyone has been pier pressured into buying SUV's, and now we have uncontrolable gas prices. Is this a premeditated plan from the powers that be?
Answer:
The economy of the USA was built on previously low fuel prices. When fuel prices go up every business that depends on fuel to help run their business has to raise the price of their finished product to stay in business.
This is called inflation.
Now if companies can still sell their products at the higher price, they can then afford to raise the employees wages enough to off-set the higher cost of living expenses of the employees, including gas price.
If the companies cannot sell their products because the prices are too high and nobody wants to pay that much, they have 3 choices:
Choice 1 relocate to a place where production costs are cheaper.
Choice 2 merge with another company.
Choice 3 go out of business.
If too many companies choose choice 3 the whole U. S. could slip into recession.
Something to think about; The gvt. is the largest employer in the USA, similar to the USSR before the break up of the USSR.
I personally think Ron Paul is the only candidate that can try to fix the USA's financial woes.
Not just gas, Bush.
The USA is not headed for economic disaster due to its gas prices.
It seems that high gas prices are causing exactly the kind of behavior that environmentalist desire. I know people who are trading in their SUVs for smaller, more fuel efficient cars. I know people who are choosing to live closer to work. I know people who are choosing to ride bikes, scooters, public transportation. I know people who are choosing to carpool and bundle their trips. These people are primarily taking these efforts to reduce their gas bill.
And, no, people freely choosing to buy SUVs is not a premeditated plan from the powers that be.
In economics, if the price goes up, the amount demanded will decrease. Ergo, people will finally understand the cost of driving and start to conserve. This has been the case in Europe for a long time, and they are no where close to economic disaster.
People who buy SUVs do so because they have personal reasons, like families or need to transport a lot of things.
There is no plan, no secret cult, or secret organization. The price of gas is merely an econ 101 problem.
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Answer:
The economy of the USA was built on previously low fuel prices. When fuel prices go up every business that depends on fuel to help run their business has to raise the price of their finished product to stay in business.
This is called inflation.
Now if companies can still sell their products at the higher price, they can then afford to raise the employees wages enough to off-set the higher cost of living expenses of the employees, including gas price.
If the companies cannot sell their products because the prices are too high and nobody wants to pay that much, they have 3 choices:
Choice 1 relocate to a place where production costs are cheaper.
Choice 2 merge with another company.
Choice 3 go out of business.
If too many companies choose choice 3 the whole U. S. could slip into recession.
Something to think about; The gvt. is the largest employer in the USA, similar to the USSR before the break up of the USSR.
I personally think Ron Paul is the only candidate that can try to fix the USA's financial woes.
Not just gas, Bush.
The USA is not headed for economic disaster due to its gas prices.
It seems that high gas prices are causing exactly the kind of behavior that environmentalist desire. I know people who are trading in their SUVs for smaller, more fuel efficient cars. I know people who are choosing to live closer to work. I know people who are choosing to ride bikes, scooters, public transportation. I know people who are choosing to carpool and bundle their trips. These people are primarily taking these efforts to reduce their gas bill.
And, no, people freely choosing to buy SUVs is not a premeditated plan from the powers that be.
In economics, if the price goes up, the amount demanded will decrease. Ergo, people will finally understand the cost of driving and start to conserve. This has been the case in Europe for a long time, and they are no where close to economic disaster.
People who buy SUVs do so because they have personal reasons, like families or need to transport a lot of things.
There is no plan, no secret cult, or secret organization. The price of gas is merely an econ 101 problem.
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