Gas prices

12/11/2008 at 7:18 am (thoughts)

Gas prices are down … way down.

But have you noticed that no other prices are dropping?

They said “Prices of everything must go up because fuel costs are going up!”

Now the fuel price has fallen dramatically and I don’t hear anyone talking about food prices doing the same.

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2 Comments

  1. mrsabbott said,

    Yeah.. I noticed this too.

  2. Clair Schwan of Frugal Living Freedom said,

    Part of the drop in fuel prices is reduced demand – which is a response to higher prices. This will need to happen to other products, services and commodities before they drop in price. If it doens’t, then we’ll just be waiting longer because it’s too easy in the corporate environment to enjoy a higher return on investment.

    When I was a kid and sugar prices rose, the price of baked goods rose immediately. The rationale was that the increase in the price of sugar had to be factored into production of baked goods.

    After sugar prices dropped, the baked goods stayed higher in price for quite a while. The excuse was that they had all of this higher priced sugar in warehouses that had to be used up.

    If you expect fairness or reasonableness from the marketplace, you’re expecting something that won’t happen until consumers apply pressure by finding or creating alternatives, or doing without or with less.

    Our approach out here on the prairie is rather simple. We grow our own vegetables, even in the winter, and we raise our own meat and eggs. We’re not self-sufficient in these areas, but we are close in many respects.

    With 175 pounds of homegrown winter squash in the basement, we don’t care whether it’s $2 a pound or $2 each. We just go downstairs and pick from 5 varieties. And, we’re still harvesting turnips and Swiss chard from the unheated greenhouse garden even after below zero temperatures.

    Whether it’s gas or groceries, we either participate in the marketplace, create our own alternative, or do without or with less. We have a choice and it’s our choices that influence what the corporate world does in response.

    Clair

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