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I was just pointing out prices had gone up & that it could
Posted on: August 17, 2018 at 16:30:06 CT
JeffB MU
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have an adverse impact upon the economy and potentially be a catalyst for a very adverse impact on the economy. Of course, there are a lot of variables in play and this could end up having little to no impact on things. Prices could start dropping significantly and prices could cause problems by being too low... eg. cause major losses or bankruptcies for oil producers and so on. Or the price increases could have been beneficial, such as if the economy would have overheated and inflation started taking off if higher oil prices weren't a moderating effect in slowing the economy down a little bit.
But at this point in time, I think that if there is a danger, the most likely one would be that a significant sustained jump in gas prices, especially in conjunction with rising interest rates, could cause an unwelcome slow down in the economy, or in a worst case scenario pop the economic bubble and cause massive problems.
As far as fixing things if I were king, I think the first priority would be to try and figure out a way to get rid of the Federal Reserve and try and move the economy to a free market regarding money... ideally getting the government out of the money "printing" business altogether.
With regard to fuel prices, I think the free market is the answer there as well. People and companies would tend to gravitate towards the best solutions on their own. If hybrids or electrics make the most economic sense, people buy them on their own.
As prices start going up, oil producing companies will spend more to produce more, and consumers will tend to work at consuming less. Consumers might tend to live closer to work or school, buy more fuel efficient cars, maintain the ones they have better, car pool & use public transportation or walk or cycle more.
There are a lot of options, and the individual consumers are the ones who should be deciding which ones make the most sense for them in their particular circumstances. All of those individual decisions aggregated together will be the best allocation of resources when compared to the other alternatives, such as having the government decide who should buy what and who should produce what and at what price those goods should be transferred.
But at this point in time, I think that if there is a danger, the most likely one would be that a significant sustained jump in gas prices, especially in conjunction with rising interest rates, could cause an unwelcome slow down in the economy, or in a worst case scenario pop the economic bubble and cause massive problems.
As far as fixing things if I were king, I think the first priority would be to try and figure out a way to get rid of the Federal Reserve and try and move the economy to a free market regarding money... ideally getting the government out of the money "printing" business altogether.
With regard to fuel prices, I think the free market is the answer there as well. People and companies would tend to gravitate towards the best solutions on their own. If hybrids or electrics make the most economic sense, people buy them on their own.
As prices start going up, oil producing companies will spend more to produce more, and consumers will tend to work at consuming less. Consumers might tend to live closer to work or school, buy more fuel efficient cars, maintain the ones they have better, car pool & use public transportation or walk or cycle more.
There are a lot of options, and the individual consumers are the ones who should be deciding which ones make the most sense for them in their particular circumstances. All of those individual decisions aggregated together will be the best allocation of resources when compared to the other alternatives, such as having the government decide who should buy what and who should produce what and at what price those goods should be transferred.
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I was just pointing out prices had gone up & that it could - JeffB MU - 8/17 16:30:06