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At about $3.50 a gallon, my gas usage is roughly $100 a month, roughly 5% of my take home pay. It would need to rise to $7/gal for it to increase by another $100/mo. It would need to rise to about $4.40/gal to bump up my gasoline spending to about 6% of my take home pay.
While I can sympathize with how many people do not welcome higher gas prices in the first place, I still fail to see the math behind how so many people (mainly in the news) are unable to make ends meet when gas prices rise from, say, $3.50/gal to $4/gal. From how I see it, it may be bad but it's a far cry from catastrophic.
At about $3.50 a gallon, my gas usage is roughly $100 a month...
I still fail to see the math behind how so many people (mainly in the news) (assert that they)
are unable to make ends meet when gas prices rise from, say, $3.50/gal to $4/gal.
Your effort is not the first time this sort of calculation and analysis has been done.
Quote:
From how I see it, it may be bad but it's a far cry from catastrophic.
Threading that needle is a full time job for about 100 people in Texas.
The cost of ALL of these must rise with energy increases...
Rent, auto insurance, and internet service comprise about half of my spending.. which I fail to see how marginally higher gas prices will affect.
Food and goods comprise maybe a quarter of my spending.. but I fail to see how these prices will increase the same % as gas (i.e. say gas prices rise 25%.. how is it possible for goods to also rise the same 25% everything else being equal?)
The cost of ALL of these must rise with energy increases...
This. The actual effect of an extra buck per gallon at the pumps can equal several hundred bucks across the average family budget. I'm reminded how empty my shopping cart looked after spending $130 on groceries the other day.
i bought USO as a hedge and get about 110 bucks profit for every 1% rise in oil.
energy effects the prices of everything but not everything is able to incorporate it into the price and what suffers is the companies bottom line.
every dollar extra we pay towards oil and food is a dollar pulled from a business else where since without a rise in wages we can not buy this and that , only this or that.
the s&p 500 has 4 out of 5 companies slashing earnings estimates and instead of the 3rd quarter gaining 14% in profits the quarter ended in a loss for the 500 companies that make up the s&p .
Rent, auto insurance, and internet service comprise about half of my spending.. which I fail to see how marginally higher gas prices will affect.
Food and goods comprise maybe a quarter of my spending.. but I fail to see how these prices will increase the same % as gas (i.e. say gas prices rise 25%.. how is it possible for goods to also rise the same 25% everything else being equal?)
Internet service truck uses gas
Infrastructure is made, put in place, and serviced by gas.
Workers (And the increases they face) are built into the cost of internet...
All of this detracts from profits, which results in price increases.
Rent:
Cost of materials for repairs goes up, your landloards costs (See above) goes up, corresponding inflation goes up, etc.
Almost EVERYTHING YOU USE requires oil in it's production, transportation, and servicing.
So it's built in all along the way.
Look up Value Added Tax and correlate.
This is why some of us are fans of locally produced foods and materials.
Interesting enough i was updating some bids for some customers which i do annually.
We are a wholesaler of over 15,000 items. It was scarey to see the drop in both our costs and the passed on costs to our customers.
I never really paid attention so i never really realized how many products have dropped in price this past year and the year prior.
Many manufacturers have no choice but absorb the increased costs of doing business as there
is always someone else who can do it better or at least the same at a cheaper price.
This is why some of us are fans of locally produced foods and materials.
No, you're just ideologically fans of it. Fossil fuel use from shipping food is negligible.
The biggest source of "food miles" is how far you drove to your local supermarket to buy your food, not how many miles your food drove to get to your grocery store. The food got from field to processing plant to distribution to your grocery store in a big truck with a lot other food. Unless, of course, you're walking to get your food, that is. In which case you should be much more proud of that than buying local (for energy saving purposes, there are other ideological reasons to buy local).
No, you're just ideologically fans of it. Fossil fuel use from shipping food is negligible.
The biggest source of "food miles" is how far you drove to your local supermarket to buy your food, not how many miles your food drove to get to your grocery store . The food got from field to processing plant to distribution to your grocery store in a big truck with a lot other food. Unless, of course, you're walking to get your food, that is. In which case you should be much more proud of that than buying local (for energy saving purposes, there are other ideological reasons to buy local).
Your own vegan promoting article states that a meal travels 4,200 miles.
Negligible? I think not!
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