The Petroleum Effect

[schgsd]

I got this big ole question.

Weren't we all sold some years ago on the fact that goods were costing more because it cost more to ship?

I drove home today past $2.72 a gal gas and I had to wonder why the pound of butter I just got from the store was $3.49 a lb.

Pretty sure it got delivered to the store for roughly a dollar a gallon less than about this time last year, when that same butter cost $2.49 a lb.

I smell an odor and it ain't my cooking.

 

[Krell1]

As far as I'm concerned, these things only seem to work in one way and not a good way. The media reports that gas is going up and the next day you see the increase even if the stuff's been in the tanks already. Cheaper transportation should mean lower costs but profits are profits and not easily given up.

 

[coltle6920]

Cows,goats and pigs unionized a few years ago hence the higher prices.

 

[diamonback68]

They claim it takes a while for the price decrease to show up at the market.

 

[Krell1]

They claim it takes a while for the price decrease to show up at the market.

That's pretty much what I was trying to say in my post. Price decreases take some time but increases are immediate.

 

[Jessie]

They claim it takes a while for the price decrease to show up at the market.

I've heard that too, but all it takes is a bad dream and the next day the prices will rise.
Kind of lop sided isn't it?

 

[LVSteve]

I've heard that too, but all it takes is a bad dream and the next day the prices will rise.
Kind of lop sided isn't it?

Ain't capitalism wonderful?

 

[Ματθιας]

Cows,goats and pigs unionized a few years ago hence the higher prices.

Do you know if they voted rats comrades or not?

Watch the cat, he might vote twice...

 

[schgsd]

Cows,goats and pigs unionized a few years ago hence the higher prices.

Jeezum then I'm harboring some of the little rotters right here in my own backyard.

 

[Hurryin' Hoosier]

Do you know if they voted rats comrades or not?

Watch the cat, he might vote twice...

The cat lives in Chicago?

 

[nawilson]

Just remember, prices aren't based on what goes into a product - despite what Marx and the media tell you. Prices are based on what people collectively will pay. When butter gets too much, people will switch to margarine. When margarine is too expensive, they will cook with oil and put jelly on their toast. When demand falls, butter sellers will lower their prices. Then people will start using butter again.

Capitalism isn't fair, but it is the best system out there because nothing else even comes close to working.

 

[schgsd]

Just remember, prices aren't based on what goes into a product - despite what Marx and the media tell you. Prices are based on what people collectively will pay. When butter gets too much, people will switch to margarine. When margarine is too expensive, they will cook with oil and put jelly on their toast. When demand falls, butter sellers will lower their prices. Then people will start using butter again.

Capitalism isn't fair, but it is the best system out there because nothing else even comes close to working.

UGH. I know you're right. But I ain't giving up my butter.

 

[nawilson]

UGH. I know you're right. But I ain't giving up my butter.

Nor will I! Nothing else goes so well with cornbread.

 

[bushmaster1313]

Remember, it's "Guns or Butter".
Guns and ammo have come way down since recent panic.

 

[Arik]

For you it's $2.72. For me it's $2.92. Wouldn't it be funny if prices kept jumping up and down every day?!?!

 

[LostintheOzone]

Just remember, prices aren't based on what goes into a product - despite what Marx and the media tell you. Prices are based on what people collectively will pay. When butter gets too much, people will switch to margarine. When margarine is too expensive, they will cook with oil and put jelly on their toast. When demand falls, butter sellers will lower their prices. Then people will start using butter again.

Capitalism isn't fair, but it is the best system out there because nothing else even comes close to working.

I've noticed that fuel prices are the lowest right now in rural areas. The very small town 10 miles from me has cheap fuel prices. I go to a crossroads station several miles north and they are cheaper still. I get anywhere near a large town or city and the prices increase 20%.

All this is based on market research which tells them the consumer in the city can pay more because of a higher average income. If they tried to sell fuel at those prices where I live they wouldn't sell very much. People would just make fewer trips.

 

[just jim]

Interesting how it went down before the election, wonder how long it will stay down? I am guessing it will go up after Christmas.

 

[REM 3200]

Ain't capitalism wonderful?

Got a better system ??

 

[Onomea]

I read a month or two ago that beef was at an all time high in the US due to the drought in the west. Not sure if that has an effect on dairy herd production though. I would assume beef cattle and dairy cattle hang out in different environments, but I am no rancher or farmer.

(I am one helluva cow consumer tho!)

 

[shouldazagged]

An old high school classmate of mine often speaks of "tinkle down economics".