posted on Jul, 7 2008 @ 08:19 PM
reply to post by Inannamute
I've been known to miss the point before. And you are right. At least that is where the merchants are putting the blame for raising food prices every
But figure this: Fuel in an over-the-road tractor trailer - an 18 wheeler - cannot exceed 20% of the cost of running the truck. If you amortize the
cost of the rig I'd guess closer to 10% is fuel costs. Maybe less.
And more ripple down effect. If the cost of food on your grocer's shelf is alloted around the various components, I'd say again, that transportation
cannot be more than 10-15% of retail. (And I don't believe it's that much).
So, if you DOUBLE 10% cost of fuel, and apply that to 15% of retail price, then .2 X .15 = 0.030. A 3% increase of retail prices based on doubling the
cost of diesel fuel. This is Milton Friedman's FREE Market at work! Or, the RICH screw the POOR again.
[edit on 7/7/2008 by donwhite]