Little's Blog Things

Monday, June 02, 2008

Don't Believe That Rising Gas Prices Has No Impact On Commodities

Gasoline has finally reached $4.00 a gallon in the Southern California area. The rising gas prices is not just in one locality but worldwide. You can read it in the newspapers - people are protesting against rising costs of gas.

When gas prices increase, transportation costs increases. That certainly include bus fares, as well as the cost of transporting goods from one city to another. So even if a simple commodity such as paper that is being transported from long distances, this will certainly increase the cost of this paper. And so a chain reaction could occur. The raw materials and the ingredients in making a paper can increase in cost due to the effect of rising transportation costs. So, production costs in making a paper can also naturally increase. Even the price of a simple scrapbook paper could be expected to rise in the near future.

Even the cost of a postage stamp has just increased recently. Prices of food will naturally increase as well. Even a nursing uniform could rise in prices soon. No wonder nurses are now even buying a discount scrubs set.

Prices of commodities will rise. But how about our salaries? Our salaries are indeed very slow to increase. No wonder other people are simply looking for a home business opportunity to augment their financial resources.

So, are we now in recession?

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