Because it's Bush's FAULT!!!!! ALL HIS FAULT!!!!!
Assignment: Current Events
Title of Article: Will Higher Gas Prices Derail the Economy?
Date of Article: Wed, February 29, 2012
Source: Fox News
Web Address: http://www.foxnews.com/us/2012/02/29/will-higher-gas-prices-derail-economy/
Summary of Article:
This article is highlighting the rising gas prices and the effects on the (recovering?) economy and on the average American household. Market Analysts and strategists are arguing that the economy can withstand the increases we’ve seen. Reasons they give are rising Jobs and Job security, steadier housing market, rising food prices, and more gradual increase in fuel prices. (????!)
Your Thoughts:
“Rising gas prices hurt less when an economy is improving than when it's slowing down. So economists expect other spending won't be badly hurt, at least for now. If gas breaks its record of $4.11 a gallon, however, all bets are off.”
Market analysts make some hefty arguments concerning the alternative spending effects of rising fuel prices- arguments that are lacking in common sense. While it may be true that we have added 2 million jobs to our economy (which jobs? Where? to whom? The lack of specificity makes for an empty argument with a nice shell) And so far as their argument that unemployment has reached new lows... well, last time I checked, it was at approximately 11% (Official unemployed- actual unemployed is 20%) Which isn’t exactly a “new” low.
“A steadier housing market, the Dow Jones industrial average's clearing 13,000 and other signs of an improving economy also help. Add them together and consumer confidence is the highest in a year. More confidence makes people more likely to keep spending on other things even if gas goes up.”
Wait- what other signs of an “improving economy” are there? and add what together? the signs of the improving economy and a steadier housing market? The housing market may certainly be steadier... BECAUSE PEOPLE AREN’T BUYING ANY HOUSES!!!! They can’t afford it!! Why? I don’t know, maybe because unemployment is at a new low. Or was it high? I don’t know, I’m confused. The problem with not giving specifics, is that when the specifics of a fact are not given,
‘"The public will howl as we approach $4 gas, but they will probably continue to increase spending," says Carl Riccadonna, a senior economist at Deutsche Bank.’
Heck yeah they will howl! We’re howling now!! But yeah, so we’re spending thousands of dollars more on fuel than we were, but we’ll probably continue to increase spending? What kind of common sense argument is that? Sure people have needs that must be met, but unless America is made up of economic morons, (I’m beginning to wonder) no, I am not going to increase spending if I have to pay 80 cents more for every gallon of gas, ( figure about $20 more per week, or about $1,000 more per year) that is going to cut into my budget and that is $1,000 that I do not have to spend on luxury items, expecially considering I still have to pay rent or mortgage, possibly a car payment (which Dave Ramsey does NOT recommend :D), insurance, utilities, other bills... and then if I had a family... it quickly adds up and translates into either a. 2nd job, or b. CUT BACK. Which would you, as a common sense American, choose?
And, yes, we WON’T cut spending... ON GAS!!!! Fuel is one of the last things people cut. When people must reserve for necessities, discretionary spending grinds to a halt. They cut other things so they will have more to put into fuel. Fuel is how they get to work. How they travel. It is the music lessons that will go, the vacations, the drives, the trips to Grandmas’s house, the trips to the mall, that restaurant on the corner, KFC’s every Wednesday, the hair salon... THAT is what will be cut. Which in turn, is a CONTRACTIONARY monetary policy. How on earth do you expect consumers to ignore the laws of free market when, the government is also ignoring the laws of free market by running a contractionary monetary policy by expanding spending and debt, and increasing fuel costs?
Answer. They Won’t Ignore it. Everything will happen as the laws of the free market govern. At least, they will until it’s a socialist market.
“Last year, when Americans were feeling it from all sides, they made tough choices, like cutting out expensive dinners.”
HA. That’s a tough choice? Where did this writer LIVE?
Also, Rising fuel prices directly affects food prices. It takes fuel to ship the food, and to operate the farm equipment to maintain and harvest crops. 1 + 1 = 2. If Americans are going to be paying more for fuel, AND substantially more for their food on top of that, are they going to “continue to spend?”
YOU BET THEY ARE!!! But only on their necessities!!! They will spend and spend and spend, more and more and more... on items and products that they used to be able to get much more cheaply. And since wages aren’t increasing, Americans are forced to use money that was formerly luxury money, to pay for necessities.
The article states, “The price of gas averaged $3.51 last year, so a move above $4 should only divert $60 billion from consumer spending this year, Riccadonna says. Last year, it drained an estimated $120 billion.”
ONLY 60 billion. Well that’s nice. That’s like saying instead of getting an F in math, I got an F+. Yippee. Which, if the county has an A- credit rating, is like saying you’re shopping at JC Penny's instead of Guccis. (I know they don’t technically have an A- Credit rating. But honestly? Do we deserve better?) Wait... how do they even MAKE that argument? Especially with all the other prices that gas will affect? Gah, this is making my head hurt.
“Some economists believe oil and gas prices are already nearing a danger zone. If gas exceeds the all-time high of $4.11, they say, Americans will think twice about a trip to the restaurant.”
What about a trip to the grocery store? Or the dentist? or the hardware store? or the GAS STATION? Entertainment only trips aren’t just what is going to be affected.
"Americans have a fuzzy grasp on most economic matters," he says, "but one thing they're clear on is that high gas prices are a danger sign."
If nothing else, at least most Americans with a smidgen of common sense will recognize at least one sign.
All things considered, I think it is clear that this article was written by a market optimist, not a market strategist.
Importance of Article:
This article strangely jumps from optimistically supporting consumer spending, and then citing reasons that consumers would spend less, and how the oil war could escalate. Yet, the article also downplays the drastic repercussions that rising oil could have on the food market, other dependent industries, and eventually the effect on the American consumer. Oh, it addresses affects, but it is lying to the American Public by omission. Yes, many Americans may have a “fuzzy grasp” on the economy, but that does not give any reason for this article to trifle the impact, or even omit the profound effects that this will certainly have on the American Economy.
There is no more money left for the consumer to spend luxuriously, especially if there is $1,000 more per year to budget... just in fuel!!! This article is omitting dire consequences of rising fuel prices and the affect it will have on many other industries that the American people depend on. Once we forsake our values, we begin to forsake our common sense. And when we forsake our common sense and values, we sacrifice our democracy. With that sacrifice, our freedom, our liberty and eventually, the ability to even think for ourselves.
Sincerely yours, The TruthHunter,
(and outraged American Consumer with a smidgen of Common Sense),
~KnightRanger :)
http://www.usdebtclock.org/index.html :D
No comments:
Post a Comment