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It
doesn't matter where you live in America these days. From a
deregulation with massive cost increases plus a threatening power
shortage on the West Coast to unusually cold weather in the South and
Southwest, all of the United States is finding itself under the same
financial blizzard as the Midwest and Northeast.
Synthetically
high fuel prices have created an economic disaster throughout the
country that is being ignored by the major media as well as Capitol
Hill. Oh, sometime in January we will start to see massive coverage of
this debacle. After it is too late for anyone to do anything about it,
that is.
I
don't use the word synthetic loosely in this article. The Oxford
dictionary defines synthetic as "artificial, man made." OPEC
playing with production as well as U.S. oil producers following suit
on the price of a barrel of crude shows that the oil crisis is in fact
man-made. Man-made to produce a new stratosphere of profits for the
chosen few. The huge costs to small business and the American people
could become a harbinger to an economic recession.
This
inflationary spiral is already having telling effects in our local
economy.
One
local businessman stated his heating bill has doubled over the same
period last year. "Right now, with the weather we are having, it
would probably be cheaper for me to close up shop, set the thermostat
on 50 degrees…"
Another
small-business man looked at the natural gas increase from both sides
of the spectrum. "People need to understand. I not only get
nailed with a huge bill here at my business, but then I go home and
find the same type of bill in my mailbox for my house. This winter is
killing me, and it’s just beginning. I can tell that this winter
will hurt my sales. I already have had people tell me they need to
save their money to pay their heating bills and are putting off
repairs on their cars. Now I'm out sales as well as having higher
expenses."
One
small merchant said: "It looks like I might have to raise the
price of a glass of beer just to stay even with last year. The timing
of the city council raising my liquor license fee really helps my
Christmas spirit also."
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column]
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A
manager of a small statewide chain store explained: "We don't get
the bills here at the store. The main office, however, says we have to
cut back wherever we can to offset our heating bills going up so high.
I asked if that included shortening employee’s hours. ‘It includes
everything,’ answered the manager."
Homeowners
across central Illinois are starting to tell horror stories over cups
of coffee. Some are lucky. They contracted for their fuel oil at last
summer's prices, which at the time seemed high. Those costs now look
like the bargain of the century.
One
individual berated himself for replacing an electricity-eating furnace
last spring with a new 92-percent-energy-efficient gas model last
spring. "It looks like I made a thousand- dollar mistake changing
to gas," he lamented.
I
could continue with local quotes, but I believe the point has been
made. Heating costs are causing businesses to see their profit margins
erode. Homeowners are finding their discretionary income being
swallowed by a furnace rather than in area stores’ cash registers.
Slowly, prices of all wares will rise just to allow merchants to
maintain margins. Employee hours will be cut, and the vicious cycle
goes on and on. The end product will be called a recession. It will be
synthetic, brought on by corporate America, OPEC and the lack of a
federal energy policy. The recession won’t affect these entities,
however. The recession has been earmarked for the American consumer,
the one group in this country that can least afford a higher cost of
living.
In
the meantime the silence of the media and our politicians is
deafening. Except for Allan Greenspan, the Federal Reserve chairman.
He is seen in the news, telling the American people that he won't cut
prime interest rates until necessary. The man just doesn't have a
clue.
[Mike
Fak]
This article is re-published
courtesy of www.fakmachine.com.
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here to comment on this article.
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