12679184, high oil prices = high everything prices Posted by PoppaGeorge, Thu Dec-18-14 02:05 AM
it's not shortsighted in even the slightest. It may mean layoffs for oil producers, but in reality it -shouldn't-. It means layoffs because they don't want to take a chance of returning to pre-$3.00/gal profit margins.
Oil will remain profitable because a cheaper product means they will likely move more product to compensate. A person who refused to fill up their tank and drove as little as possible at $4.00/gal might fill up and top off more often and drive more places at $2.00/gal.
When oil first hit over $3.50 a gallon, every corporation across the board reported they would need to raise prices to compensate for getting products to market. That $2.99 1lb package of Eckrich smoked sausage turned into a $3.50 13oz package and they blamed high gas for it. Our shrinking quantities and higher prices have all been blamed on high oil prices.
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