Wednesday, June 04, 2008

When Will it End?

I guess it remains to be seen how high gas prices will rise. A few months back, predictions of $4.00 gallon gas were running amuck in the media; saying that during the peak of the summer, we'd more than likely see that watermark. Well we already surpassed that before Memorial Day. Now, media pundints are discussing the possibility of $5.00 gas. And if a major natural disaster or terrorist attack hits a particular location in our country this year, don't be surprised to see gas jump to as high as $7.00 or $8.00 a gallon. I just cannot fathom gas prices going that high and I am very much concerned for our ecomonic well being as a country if the prices jump up that much. It's hard to understand why the prices are as high as they are now - but $7.00 gas is absolutely mind blowing. As a result of the gas prices rising, so does the price of everything else including simple grocery items. As a way of bringing the price of gas, some are discussing the possibilities of suspending or even eliminating gas taxes. Well, that would be nice, but we would need to find some other way to bring in another source of income to supplement the lost gas tax. A major source of roads in our country is gasoline taxes. What happens to our roads if we eliminate gas taxes and find no other means of replacing it? We are pretty much stuck between a rock and a hard place.

The cost of living continues to rise each and every year and it's affecting both the lower and middle classes. In fact it's no surprise that the middle class is basically becoming extinct with a large majority of people simply qualifying for the lower class. Of course the rich are living fat and happy. They always seem to get the most protection while everyone else suffers. I wonder if they ever worry about the high price of gas or having to come up with enough money to feed their families? Obviously they don't but it would be nice to see what they would do in our situation. Back in the good old days, the father was always the one to go off to work to support the family while the mother stayed home and did housework. That is becoming increasingly more rare these days as the mother is also needed to bring home the bacon, so to speak. It's definitely not a simple thing to fix as it will take a lot of thought and many ideas. Then you include the whole gas price debate and that really throws a wrench into it all. Let's say both parents need vehicles to drive to work? That's added gas to go to two different places. They also live in a rural area where public transportation is not an option, so driving is an absolute must in order to get where they need to go. Quite possibly, the only option they have is to somehow carpool with each other or someone else they work with, or buy more fuel-efficient vehicles. Then if gas ever does rise to $7.00 a gallon, it just makes it that more difficult to make ends meet. I suspect that if we do reach that $7.00 benchmark, you will be seeing mostly four-cylinder engine cars on the roads like most people drive in Europe instead of SUV's and pick-up trucks. Just yesterday, GM announced the closure of four automotive plants that built trucks and SUV's. They are definitely taking notice of the future in America.

As I mentioned in my last paragraph, public transportation does not exist in rural areas of the country. You look at where I live in the Upper Peninsula of Michigan. The city where I live is the largest in the peninsula at roughly 20,000 people. We have taxi services and public buses, but that is it. Everyone else drives to where they need to go. The busing system here is not what it is in New York City, either. They follow a schedule, but they do not make as many stops in the city and surrounding areas. They make drop-offs in some of the smaller surrounding communities but those stops are limited to one or two locations. They do not go out of their way to drop you off at your doorstep, but maybe so if you provided a bit more money. Then the taxi fares up here are pretty astronomical. I just don't see how people would commute to work everyday in a taxi cab and continue to get by with what they make. So our options are limited in rural areas of the country. Sure, there are options but they are pretty slim. I just can't imagine those who work minimum wage jobs being able to support themselves as everyday costs continue to rise. The average monthly rent for a one-bedroom apartment in the city where I live is $425! Even that seems pretty rediculous.

Nobody appears to be immune to the economic struggles that face our country. The state of Michigan is one of the worst states in the country as far as the economy and politicians are already speculating that further cuts in the state budget are coming. Additional cuts means less money for programs and services that people depend upon. We're getting down to bare bones in a lot of areas and then I ask, what next? When will it end? All that means is taxes rising and the cost of living continuing to climb. Hourly wages for many workers in the nation remain relatively flat year after year. Obviously we reach a breaking point and then where does the country go then? I just hope we are not headed towards another great depression because many people, possibly even the rich, will be suffering then.

1 comment:

Anonymous said...

Unfortunately, it is the "fat and happy" with the power to make the decisions affecting those who are really hurting. Until they can feel what's going on for themselves, it's unlikely that any real solutions will surface, and the problems will just move from one area of our lives to another. It's scary, sure, but a terrorist attack or natural disaster is much scarier than a $7.63 gallon of gas.

My last one bedroom apartment was $2200/month, so don't feel too bad.