reply to post by Attari
Owner Operators of big rig trucks will slowly park their trucks, and possibly sell them. It will become too expensive for them to operate. Actually
that has already started to happen.
Trucking companies could possibly do both. One start reducing drivers pay by hiring alot of new drivers with less pay, and saying good bye to older
company drivers in one way or another. Two, pass the new costs to their customers, who then pass along the costs to the consumers. Therefore the
prices of everything from groceries to items goes up.
If the companies reduce the pay of company drivers too much, they will start quiting since they will not be able to afford to be out on the road and
take care of their families like they were once able to.
Then government will try to expand the cross border program between US an Mexico to allow more Mexican trucking companies to operate in the US, and
therefore take away US truck driving jobs because the Mexicans will be willing to drive for much less, and more willing to operate illegally.
Information on the Cross Border program
www.ooida.com...
This also ties in with the trans Union huge highway the government has started to build in Texas.
Now since prices are going up every where, the cost to run a business will also go up from rent to over head. When the cost becomes too high, small
businesses will close, and possibly start to hit medium businesses, and if it gets bad enough hit large businesses.
Basically all this means is more and more people will become unemployed. There will be more workers than there will be jobs let alone jobs that will
be able to pay the bills and rent/mortgage. Some people will try their best to hold multiple jobs, which means even less jobs for others. Some will
try to find more creative ways to make money, and others will loose everything they have and possibly become homeless if they don't have friends or
family that will take them in.
People will be living on tighter and tighter budgets as things get worse and worse. They will stop driving and going to different places as much. The
first places to be affects will be those providing entertainment such as movies. People will to be able to afford to go let alone be able to drive
there. Memberships to various places will lapse. These places will be fairly hard hit, and I'm sure are starting to feel it already.
As prices continue to increase, people will stop buying anything that isn't a necessity. To conserve on gas, they will try to just make weekly trips
or even bi-weekly trips to the store and grocery store. The stores that will do better are those selling the necessities and other items cheap.
Could it lead to a depression such as in 1929? If nothing is done to stop the rising gas prices, inflation, bankruptcies, job losses, and etc. Then
yes, it very well could.
I actually think the government has made the situation worse by trying to infuse the economy with billions of more dollars which causes inflation. The
bankruptcy changes where it makes it that much more difficult to almost impossible for people to discharge their debts. Making it more appealing to
companies to move their factories over seas. Allowing a lot of people from Mexico and over seas to work in the US, just so employers can pay their
employees less. That is just the tip of ice berg.
Can it be changed around for the better? Yes, I believe so. Will it be changed around for the better? That I seriously doubt.
Some of the new talked about policies will even make things worse such as Hillary wanting to make health care mandatory for everyone to have. If that
happens, I do see more bankruptcies in the future. Especially if gas prices do not go down, the job situation doesn't turn around (I don't mean the
minimum wage service paid jobs), inflation doesn't decrease, along with all the other factors that made this a terrible economy.
Inflation is hard to beat. Even if gas prices go back down to around $2.50 or even near $1.00, that still doesn't mean the cost of goods will also go
down. The companies already know the consumers are willing to pay the higher prices. The people are already trained to accept those higher prices.
What will happen if things continue to get worse and worse? There is one phrase from the Bible book of Revelations I remember. A loaf of bread for a
days wages.