Economics Tricks

Recently I've read a lot of comments from business owners and customers alike complaining about the high cost of gas and how it affects people buying goods ranging from electronics all the way up to furniture.

The truth about high energy costs is that it is the blood of our US economy that keeps us running. And the ironic part it is also the blood of all other developing economies in the world. With such high demand and manipulated oil supply (heard of OPEC?) oil is reaching $100 a barrel, and people will start seeing $4 to $5 a gallon of gas very soon. And it won't just be at the pumps where you are going to be affected.

Electronics that are manufactured in Asia will be affected, as the basic plastic (made from oil) that encases most electronics will be more expensive as a raw material. Delivery costs for large items, such as furniture (sofas, bedroom sets, living room sets, etc.) will cost much more to be delivered from the manufacturer to the wholesaler to the retailer and to you, the customer.

I think the basic psychology of people when they see that gassing up a full tank of their car will cost $100+. Wow! My first reaction will be to just stay home. If I need to buy something I will just have it ordered over the phone/online and delivered.

Making purchases online is a great alternative, because then you don't have to drive from store to store and inquire about the same item over and over again, when you can just sit down with a few catalogs and do some price comparison shopping online.

The state of the US economy with high interest rates, weakening dollar, rising energy costs, war, inflation, and the drastic housing slump makes for a very bleak future. Aside from shopping for your iPod or furniture online, what about groceries? What about visiting family and friends?

Will this mean a matrix of a community all hiding at home because it is just too costly to go out? It will be only a matter of time when businesses will have to raise prices of their products and services to be able to absorb rising energy costs.