what's the big deal with the economy?

[knoxtnreef]

All I hear from the media is how were doomed and gas is outragest high. I personally know no one who has lost their job nor in dire straights. Heck, I see more people shopping now then ever. Sure gas is 4 dollars a gallon but whats that really hurting you, an extra 30 dollars a month? Take away fast food or a rental movie and your good to go. I think the dollar falling is a good thing because people have no control over their spending habits thus get themselves in a bind. Anyway, does anyone have insight?

 

[cee]

Groceries are also way up. If gas prices are only affecting you by $30, consider yourself lucky. Try feeding a family and paying for gas on 2-3 vehicles and I think you can begin to understand what the average family is dealing with.

 

[Quiet Tempest]

The price of groceries has nearly doubled on most items. I can remember a time not so long ago when I spent under $5 for a gallon of milk... When feeding a family of four (or more), buying groceries can now put a huge dent in your budget.

 

[knoxtnreef]

Try feeding a family and paying for gas on 2-3 vehicles

I have two vehicles and eat about enough for a family (for real).


That's a joke by the way. Laugh.

 

[gsusfreak]

i havent seen any real hits on my wallet....only gas....but then again....i havent bought anything recently....but thats not due to the economy, just havent really wanted/needed much

 

[Pandarian]

I think there can be major effects. Since gas effects almost all of the products you buy (ie. transportation of groceries), there will a positive increase in the cost of those things.

Then there are the effectors of individual money supply. For example, airlines companies are making less money, which in turn puts less money into employees pockets, which decreases spending.

The increase of cost and the decrease of spending money will the continue to have feedback and make the problem a little worse.

It's kind of interesting to see what happens when you put all those things together.

Economics is really interesting. I'm fully going to brag here, but I made a 100 in Economics last semester I think that was a good feat considering the class average was in the 70s.

 

[Runner]

For food, you need to factor in the government mandate to use ethanol causing food prices across the country (and the world) to sky-rocket since 25% of our corn crop now goes to ethanol production and land is moving away from food production to fuel production causing a drop in supply of other produce. Very sad considering ethanol is still more expensive than gasoline to produce. Perhaps switchgrass will be the agricultural answer should our country never get around to drilling for more of our own oil again (as opposed to begging for other countries to drill more of their oil).

But our economy overall is strong. We never had a single quarter of negative growth (just a very low positive growth figure last quarter) and the economy is expanding once again. In Knoxville, we never even had a big housing problem like was seen in several major markets. And any unemployment problems are localized to three areas of the country (not here).

High fuel prices will effect the price of everything, but so long as we have as much fuel as we want to buy at the pump, I refuse to call it a "crisis". It isn't like rationing in the 70's.

So don't worry about media sensationalization at the moment. I tend to ignore them during an election year because they whine and talk out-of-school every single election year.

 

[knoxtnreef]

that's what i was thinking Runner. I hear the farmers are making tons of cash and the cattle farmers are going broke over the corn/feed.

 

[tangboy]

I had to sell my spare liver just to fill up my tank last week... oh wait... you don't have a spare liver... this could be very ba.... *thump*

 

[ct_vol]

<a href=showthread.php?s=&postid=12636003#post12636003 target=_blank>Originally posted</a> by knoxtnreef
I hear the farmers are making tons of cash and the cattle farmers are going broke over the corn/feed.

Cattle farmers are going broke over Government mandated programs such as the Microchip ID system and NAFTA, not from the increased price in feed... The price in beef has climbed steadily with crop prices... They have used Mad Cow disease as an excuse to implement this system, but really its a way to monitor a cash based system and further push out smaller operations...

The Crop Farmers are still receiving subsidies to withhold the amount of corn they produce... That is what keeps the price of corn high, not the increase in ethanol production (though that hasn't helped)...

 

[laud]

Re: what's the big deal with the economy?

<a href=showthread.php?s=&postid=12629914#post12629914 target=_blank>Originally posted</a> by knoxtnreef
I personally know no one who has lost their job nor in dire straights. Sure gas is 4 dollars a gallon but whats that really hurting you, an extra 30 dollars a month? Take away fast food or a rental movie and your good to go. I think the dollar falling is a good thing because people have no control over their spending habits thus get themselves in a bind. Anyway, does anyone have insight?

The people I know are hurting. Guys that used to drive 30 miles to give free estimates are losing. Just the fear of money troubles causes people to tighten the reigns, causing remodeling to come to a halt. Most of my friends are in that field and are hurting. Sure they can "survive", but that shouldn't get "poo poo'd".

Just because you and I aren't suffering, does not mean others aren't. I just try to empathize with other folks hardships. IMO

p.s. 30 dollars a month is if you don't drive anywhere. I imagine truckers are blowing a whole lot more per month.

 

[knoxtnreef]

yea...I was speaking of back and fourth to work type driving. Someone who makes their living driving a vehicle is having a real tough time for sure. Gas in that perspective has tripled. That's why prices rise. Trucking companies have to charge higher prices to make-up for their shortfall and then that trickles down to the consumer.

 

[ct_vol]

<a href=showthread.php?s=&postid=12636283#post12636283 target=_blank>Originally posted</a> by knoxtnreef
Someone who makes their living driving a vehicle is having a real tough time for sure. Gas in that perspective has tripled. That's why prices rise.

$350 a week baby!!! Pass it on to the client... I about spend Ashley's salary in gas...

 

[Flavum]

INFLATION! woot I love it.

AS the Federal Reserve prints money out of thin air the dollars were holding become weaker.

I dont believe you can have an economy where the currency is based on nothing, its doomed from the start. It was at one time backed by gold and silver but those days are gone. the dollar today is only worth about 3 cents compared to when it was created in 1915.
Three pennies! Stated in reverse, 1/20 of an ounce of gold will cost you $32.50 today, instead of just $1, as it did 75 years ago. Sad, but true.
If you dont think the economy is in trouble than your just not looking around...

 

[laud]

Not just truckers, but cabbies, airlines, landscapers, food suppliers and probably everyone except stay home parents and stay home computer workers. LOL

All this AND our American dollar is worth less and less each day.

Other than that life is GRAND!

Peace

 

[Runner]

Nobody was poo-pooing individual hardships. Just the perception of a robust versus weak economy, which is not tied in lock-step with gas prices. Just because individuals are suffering doesn't mean the economy as a whole is suffering as well. Jobs change. Some die off, some get stronger. The happens in the boom years as well as the slower growth years like the one we are in.

These days, farmers and railroad companies are hitting it big. So are the politicians as they rake in a percentage of government taxes off the top of gasoline sales that is twice the profit of the oil companies.

Heck, the rail transportation business is making a big revival.

 

[EvilMel]

I can't help you on groceries, BUT...

All I'm sayin' is, get yourself one of these:

 

[goreefer]

[violation]

 

[bane]

In my county were a 25 year high for unemployment, not only has gas gone up but food as well, don't know if it has risen but i know of a lot more theft lately. I know a few people who are in the process of losing their houses including my brother and his kids.
Things are getting rough.

"I think the dollar falling is a good thing "
come on really

 

[imsqueak]

I don't know about the R/R are raking it in. Their volumes are actually DOWN due to decreased imports caused by the weak economy and weak dollar making everything except Chinese goods more expensive (they peg their currency to ours).

I can think of at least 3 companies in automotive and retail who have cut both 2nd and 3rd shifts. People ARE loosing jobs around here.

And for the companies who believe they could weather the storm if they could get some temporary extra financing, that's not easy with the lenders still reeling from bad mortgages. They aren't eager to stick their necks out for a company on the edge of make it or break it. Look at Idle Aire for example. There may be another local example announce chpt 11 in the next 2 wks - a BIG one.