Here’s Why the Cost of Everything You Buy is Going Up

Written by adminJuly 16, 2018
Life Style

If you’ve been to the grocery store lately, you might’ve already noticed that a dollar seems to be stretching a lot less further than a few months ago. In fact, the Consumer Price Index is up 2.9% since last month, it’s fastest growth since 2012.

So, what’s behind this sudden rapid growth of inflation? There are several answers for this. Overall, coming out of the recession, supply and demand is changing the way we consume things. Once stagnant sales are again in overdrive, propelled forward by recent tax cuts and an increase in employment.

Income has risen as well, but it’s not enough to overcome this new bout of inflation. It doesn’t matter if people have more of their own money if everything starts getting more expensive, essentially negating potential budget increases.

The main reason for the inflation hike is the price of oil. Since 2015, we’ve been enjoying a brief reprieve from high oil costs that threatened to break almost $4 per gallon. Oil prices that were once $30/barrel are now up to $70/barrel as OPEC can’t seem to make up its mind about drilling to keep up with demand.

When the price of gas goes up, so does everything else. Gas is used in nearly every industry, especially for shipping, so those costs are usually handed down to the consumer.

The demand for housing has skyrocketed as well. It’s not just places like Seattle and New York seeing growth in the markets, but also a lot of the smaller rural towns as well. When there’s higher demand, it can cause prices to inflate, forcing people to pay more each month.

Interest rates tend to shoot higher as well. The rates are lowered when the economy isn’t doing so well to help people get back on their feet, but when unemployment is down and wages are up, the government feels confident enough to hike the rates.

And then, there are the tariffs. It’s not just the tariffs on steel, that have made things like laundry equipment and vehicles 13% more expensive, but the retaliatory tariffs on U.S. agriculture that is sure to impact the price of food.

The price of eggs is up 14%. Gardening and lawn care is up 7.6%.

It’s looking to be an expensive summer across the country. We can only hope that gas prices get relieved, which will help cut some of this inflation going into the holiday seasons. A good indicator will be how well the Back-to-School shopping season does as it begins to kick off going into August.

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How Trump Ending the Iran Deal Will Impact Gas Prices

Written by adminMay 14, 2018
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We all know how fickle gas prices are. I used to joke every time they rose that someone must’ve hiccupped in the Middle East.

When Trump decided this past Tuesday that it was time to end the Iran nuclear deal, we as Americans either supported or opposed it based upon our knowledge of the situation and political affiliations, but we didn’t think about the other ramifications this might play out – and one that could severely hit our pocketbooks.

Now, the important thing to know is this: this U.S. gets no direct gas import from Iran, but many of our allies do. These are the same allies who have blasted Trump in the past several days for his decision to cut the nuclear deal, probably more out of personal interest.

One country who holds a lot of cards in this situation is China. 1/3 of all of Iran’s gas output is guzzled by China, and where China falls in this whole situation will play a major role in future fuel prices.

In fact, if you haven’t noticed yet, the prices have already surged up merely on rumor of Trump’s well-guessed decision to cut ties with Iran. While it doesn’t directly tie in with where America gets its fuel, any drop in the global supply will ultimately ratchet up the prices.

With China being Iran’s number one customer, this doesn’t bode well for the relationship of the two countries who are already deadlocked in an impending trade war. The situation will become grave indeed if the Trump administration decides to impose sanctions on countries who continue to help Iran.

Our European allies, who also seem quite frustrated with Trump’s decision, also seem less likely to play along. But even if they do, undoubtedly to keep Trump happy, sanctions on Iran won’t be as impactful if the U.S. can’t get China on board.

The last time Iran was under sanctions before the nuclear deal was created by the Obama administration, Iran just churned out more oil to beat any economic hit they might’ve taken.

China went from buying 420,000 barrels per day to around 481,000 barrels. Just before the nuke deal was about to expire, they dramatically increased their imports to around 700,000 barrels per day earlier this year in expectation of the deal to fall through.

Recently, OPEC and Russia made a deal to cut oil supply, along with Venezuela and Saudi Arabia. The uptick in the U.S. economy means the demand for oil is back on, and now increased volatility in the Middle East may just create the perfect storm for another hot summer with higher gas prices.

Bank of America, along with other experts, are already predicting a return to $100 barrels of oil this summer, which will do nothing but put increased pressure on nearly every industry that is still recovering from the decade-long recession.

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Gun Sales and the American Tragedy

Written by adminFebruary 23, 2018
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Anyone who has watched the news in the past few years can tell that Americans have a deep love-hate relationship with guns. Since our founding, guns have been a symbol of nationalistic pride and self-defense.

According to the constitution, our right to bear arms will not be infringed. The Founding Fathers believed there may come a time when every man will have to defend what’s his, even from his own government.

But, if you were to ask an anti-gun activist, those rules no longer apply while living in a modern, civilized society. After every mass shooting incident or tragedy that rocks our country, the calls for stricter gun reform and even a full ban of certain weapons grows stronger.

Yet, despite the cries from the anti-gun lobbies, there’s always one thing a national tragedy never fails to do: spike gun sales.

There’s a major gulf between both sides politically. As they appear to play tug of war with each other, there’s a real fear that the U.S. will go the way of Australia and other countries that gave up their weapons years ago after mass shootings.

The problem is, those other countries aren’t the United States. They don’t have a historical culture that revolves around guns. They don’t have a constitution that personally guarantees them the right to carry. And so, the debate continues.

Guns by the Numbers

Statistics show that there are 114 guns per 100 people in the U.S. It’s difficult to give an exact number on how many guns are out there, but it definitely outnumbers the current population. There are certain events we can look at to see what drove gun sales, and it goes back to fear.

For example, we saw a surge in gun ownership after Barack Obama was elected president in 2008. This event is what pushed gun sales far above the population at the time. Fear that his anti-gun agenda would eventually be fulfilled drove gun sales by the millions.

 

After Sandy Hook, gun sales broke historic trends and rose by about 3 million after the months that followed the tragedy. These same types of numbers can be seen after every tragedy that hits the country.

It’s not just the purchase of guns that skyrocket, but also the number of permits to carry and the stocks of gun manufacturers.

After the Las Vegas and Pulse nightclub shootings, stocks rose significantly for most of the top gun companies out there. NRA memberships soar.

Whether you consider it patriotic duty, defending your rights to freedom, or pure lunacy, there’s no doubt that Americans love their guns. And when fear drives them, they decide to weapon up to protect themselves and their families at any cost.

No one has all the answers to solving the mass murder crisis that seems to be plaguing our schools, churches, nightclubs, and streets, but the solution at present seems non-existent. This deeply divisive issue threatens only to continue to divide us further.

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