That the cost of gas is going up (now at $3.47) is no real surprise what with all the troubled in the Middle East! At least that's how it would appear at first glance. The thing is, these recent rates increases have absolutely nothing to do with the supply or the demand. We have a surplus of gasoline in the US currently and prices should be stable. Just don't blame Baghdad as the people who are currently jerking your fuel strings! But everyone should understand a simple economical rule.
As the cost of gas rises, the amount of money citizens will have for fun and entertainment purchases will plummet. That's because many key utilities are also going up in cost. (Electrical rates for Empire customers are 7% higher than they were at the start of the year with more increases scheduled to come). Food prices, especially for items like meat and coffee have also dramatically risen. The large health Big insurance companies are about to publish their rates for 2015 and the rumor is that they won't be pretty! As a matter of fact, hundreds of thousands of consumers nationwide who bought insurance plans under the Affordable Care Act will face a choice this fall: swallow higher premiums to stay in their plan, or save money by switching. (Recent studies show an increase in premiums of between 8.5% and 22.8% for next year, according to a Wall Street Journal review of the filings).
So, consumers are starting to get it from all sides. The question is, who will suffer the most. Will it be the small local businesses? As everyone tightens their purse strings, will Internet site begin to suffer? And, then the question is 'could this all have a domino effect on the economy as a whole?
For my part, I plan to do the following;
- Curtail my trips in the auto as much as possible. No more eating out!
- Plan not to attend events that might cost me money.
- Cut back on extras at the grocery mart and shop only for generics.
- Keep the thermostat up as high as I can tolerate it during the summer.
- Cut back drastically on purchases over the net.
In other words, I plan to live as cheaply as possible until such time as things improve!
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