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Cars=Economy in media?
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01-29-08, 08:04 PM
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ChipSeal
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Quote:
Originally Posted by
JusticeZero
"...Rise in oil prices are expected to have negative effects on the economy..."
As all goods travel from extraction to production to store, they make all or part of the trip by truck. Oil prices affect shipping costs directly.
Those costs must either be passed on to the consumer or cause reduced profits.
If they are passed on to the consumer, he will be unable to buy as many things.
If profits are squeezed by either the producer, the manufacturer, the shipper, or the retailer, they will have less capital to spend and more growth opportunities will be passed by.
The cost of energy has an impact on everyone's bottom line.
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