Oil prices go up, retailers adjust prices...cost of living goes up; then?

Question

Interesting how everything revolve in a circle! Is this what life is all about?
Oil prices go up and middle men get rich (not necessary the people who live in the Middle East); shops increase their selling prices because oil prices go op. Consumers complain cost of living goes up, demand salary increase (if employed)....everything goes round in circle.

So the trick is to stay within the economy (do not retire; go something that will generate income; or else do not complain).

What do you think?

Answer 1

Oil has caused serious inflation in many economies. The complaints about energy prices have many people to blame. The trick to getting back in line is to reduce oil consumption. Since other countries are increasing energy demands, the US should do what it can to reduce its. Developing more fuel efficient vehicles, and stop manufacturing SUV's would go a long way.

Answer 2

This is very simple to understand if you look at it. If it cost the oil companies more money to produce or extract the oil they have to pass that cost on down the line inorder to maintain a profitable business. Every business does this, it just isn't as noticeable when it's not a major commondity like oil. In the end it's the consumer who winds up paying the most in situations like this because each business after the initial seller has to raise prices as well in order to still turn a profit.

Answer 3

i think its bs gas shouldnt be so freakin high im not for sure but when bush sr was president wasnt gas high accoedin to the ways it was back then ..now his son is pres gas is high again..thats messd up

Answer 4

... "go to something that will generate income; or else do not complain"?

geez... I bet your a fun guy... hahaha....

to bad you won't have any friends to spend all your money with...

Answer 5

Yes it is a terrible circle! When will it stop? They call that a "Depression"!

Answer 6

Welcome to Supply Shock Inflation.