Tuesday, May 27, 2008

dodging an infrastructure collapse

rising fuel prices have effected everyone. but, if diesel keeps rising at a higher rate then regular grades, the truckers will remain the ones taking the biggest hit. which doesn't really effect the everyday american until, through a trickle down effect, we have to pay more for our consumer goods due to those higher shipping prices.

with the average american paying more on their own gas, and then trying to absorb the rising prices of necessary products, how will our culture still turn a profit? retail is barely keeping alive by exporting to europe and charging 1.55x more (so a $20 shirt costs 20 euros, but the american company makes a profit off the exchange rate).

america does not produce enough goods though to solely export because we keep outsourcing every possible job to other countries who can provide the same service for less... but how can we not? the rise of fuel and other manufacturing costs will keep escalating to the point where a business wouldn't be able to succeed in the us.

unless there is some economic concept i'm not getting, or some magical lottery the us plans on winning, i don't see how our economy can recover from this in the long run. i do think we will be able to turn the corner on this border-line recession, but after that there will be a much worse downturn, in the near future, unless the energy crisis can be solved in the next couple of years.

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