U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 08-13-2012, 09:08 AM
 
Location: DFW
6,864 posts, read 12,735,884 times
Reputation: 5287

Advertisements

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.
Rate this post positively Reply With Quote Quick reply to this message

 
Old 08-13-2012, 09:14 AM
 
Location: The Triad (NC)
31,344 posts, read 69,548,244 times
Reputation: 37365
Quote:
Originally Posted by ragnarkar View Post
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.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-13-2012, 09:31 AM
 
5,725 posts, read 9,113,166 times
Reputation: 7981
So you NEVER use ANY goods and services?

The cost of ALL of these must rise with energy increases...
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-13-2012, 09:39 AM
 
Location: DFW
6,864 posts, read 12,735,884 times
Reputation: 5287
Quote:
Originally Posted by Themanwithnoname View Post
So you NEVER use ANY goods and services?

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?)
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-13-2012, 11:34 AM
 
Location: Sinking in the Great Salt Lake
13,145 posts, read 20,369,450 times
Reputation: 14041
Quote:
Originally Posted by Themanwithnoname View Post
So you NEVER use ANY goods and services?

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.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-13-2012, 11:45 AM
 
85,433 posts, read 82,934,353 times
Reputation: 61184
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 .
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-13-2012, 03:56 PM
 
5,725 posts, read 9,113,166 times
Reputation: 7981
Quote:
Originally Posted by ragnarkar View Post
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.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-13-2012, 04:05 PM
 
85,433 posts, read 82,934,353 times
Reputation: 61184
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.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-13-2012, 04:25 PM
 
Location: Vallejo
16,257 posts, read 18,206,324 times
Reputation: 14486
Quote:
Originally Posted by Themanwithnoname View Post
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).

https://docs.google.com/viewer?a=v&q...N5NRogPPRyAOHA
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-13-2012, 06:33 PM
 
5,725 posts, read 9,113,166 times
Reputation: 7981
Quote:
Originally Posted by Malloric View Post
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).

https://docs.google.com/viewer?a=v&q...N5NRogPPRyAOHA

Your own vegan promoting article states that a meal travels 4,200 miles.

Negligible? I think not!
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics

All times are GMT -6. The time now is 07:18 AM.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top