Monday, April 21, 2008
Gas Prices
I think probably everyone has written a post about gas prices, but we were talking about this in Government the other day, so I thought I could relate it to Econ. Mr. Swantz told us that he has a business in lawn mowing that he does on the side. He said that because gas prices are so high, he has to raise the prices of how much it costs to mow lawns. He said that some people understood that higher gas prices meant they were going to have to pay more to get their lawns mowed, but he also said some people were so mad at the increase in price that they didn't want him to mow their lawn anymore. I think that stuff like this might start to happen everywhere. People aren't going to want to spend money on things, because gas. It's kind of scary that basically everything our society sells is dependent on the price of gas.
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3 comments:
Yeah it is a scary situation, especially since the gas resevoirs are depleting and won't be replenished in our lifetime. I did my econ paper on pollution, sort of off topic but it still really relates here since my solution to the costs of pollution was to switch to renewable energy sources. With a couple incentives to make the crossover, these companies would be more economically sound, at least from my analysis (which is probably lacking considerably). The social cost curve of pollution, or the cost that the people affected by the company practices have to pay, acts like a much higher demand curve and creates a lot of loss for the firm. So pretty much gas sucks.
i would agree with brent on this one, gas does suck... This just goes to show that high gas prices dont just cause trouble for drivers, but for almost every aspect of our economy. Transportaion of goods, police cars, lawn mowing... this problem goes way beyond a bunch of big SUVS.
Not to mention the other problems it's causing - as Taylor mentioned, driving many other prices up.
Look up "stagflation" sometime. That's what we will be/are looking at (depending on who you listen to). Hard to solve, too.
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