Oil price jump wreak havoc?

[CigaR007]

The Wealth of Nations - Wikipedia, the free encyclopedia

[redyaris]

Originally Posted by Sularus

who is Adam Smith and what is W of N? Sorry, I feel a little lost at the moment.

Google Adam Smith then go to wikapedia and read the article. He is the grand father of economics.

[roflwaffle]

Originally Posted by basjoos

Just like most of the GNP growth of the current "recovery" (the recession supposedly ended in June 2009) is due to inflation rather than growth in actual economic activity, hence the jobless "recovery".

Isn't inflation really really low? AFAIK the whole jobless recovery thing is due to employment likely being a lagging indicator on top of the recovery being very tepid.

[j12piprius]

Originally Posted by endurance

unless/until we get a black swan, like a revolution in Iran, Saudi Arabia, Bahrain, etc.... which seems more likely than ever

But isn't 10 cents a gallon the price for gas in Iran?

So..... invading them wouldn't solve anything.... except to change that 10 cents to $4 a gallon, like here.

Maybe we should move to Iran??? Or at least do as they do.

And stop putting up with the higher ups trying to tell us what to do, how to live, how much they want us to pay, and who they want us to invade.

[jamesqf]

Originally Posted by CigaR007

The North American market cannot bear a price of 1.50$/L (5.7$/gallon) for fuel. Look no further than 2008 to see what happened.

What did 2008 have to do with the price of gas? At most, the $4/gal spike might have triggered what would have happened anyway, thanks to an overheated market and housing bubble.

This time around, I can't see it doing more than setting off another round of complaints from the usual "but cheap gas is my Gawd-given right!" whiners, and maybe increase sales of Volts & Leafs - if they aren't already sold out months in advance of production.

[CigaR007]

Soaring gas prices will also have an impact on other goods such as clothing and food.

[Arragonis]

Originally Posted by CigaR007

Soaring gas prices will also have an impact on other goods such as clothing and food.

Thats just the start of it.

[Arragonis]

Originally Posted by redyaris

Google Adam Smith then go to wikapedia and read the article. He is the grand father of economics.

Every tax, however, is, to the person who pays it, a badge, not of slavery, but of liberty.

[jamesqf]

Originally Posted by CigaR007

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.

[redneck]

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.

You got to be joking, I hope...

Oil is tied to almost every product we use.

Energy,food,clothing,packageing materials,electronics,building supplies,chemicals,etc,etc. The list goes on and on....

A 50% increase in the price of oil will most likely lead to a 15% increase in cost of consumer goods across the board. Since we are in a reccession, unemployment is high and workers that do have jobs are asked (forced) to take pay cuts, this then becomes a great burden to bear for most people.

The price of oil has a massive effect on the price of goods and services. It is a unseen tax that is handed down the line to the consumer by a very small group of people who profit handsomely.


>