View Single Post
Old 02-27-2011, 01:28 AM   #39 (permalink)
jamesqf
Master EcoModder
 
Join Date: Jun 2008
Location: Earth
Posts: 5,209
Thanks: 225
Thanked 811 Times in 594 Posts
Quote:
Originally Posted by CigaR007 View Post
Soaring gas prices will also have an impact on other goods such as clothing and food.
Not all that much of an impact. It's a marginal increase in a cost that's a small fraction of most products, and that cost can easily be reduced by economy measures. We see the price of other commodities go up & down all the time, without much impact. Oil's no different.

And, as has been pointed out, the economies of Europe &c seem to be doing quite well with gas prices twice or more what they are in the US, while places with artificially low gas prices, such as Iran & Venezuela, survive only because their economies are propped up by oil exports.
  Reply With Quote