Edit post

Edit your reply below.

Post Body
Enter your post below.
<p>    As all of us know, prices have been going up on everything from garden railway track to food and pantyhose. I used to think that when a gallon of milk goes up 50¢, how does that relate to an oil increase. What does the cost of oil got to do with milk prices? The answer is: the cost of a barrel of oil, affects not only transportation costs, but it also affects everything that depends on oil and that just about includes everything. That gallon of milk has to get from the dairy to the coop. The container is plastic and oil affects the cost of the container. The dairyman has to buy feed, which again has to be transported to the dairy for the cows. The cost of electricity to operate the dairy increases. The trucking cost to get that milk to the retail store increases. Once you add up all the small increases to get that gallon of milk to the retailer, it's not so difficult to see why the price of milk has increased as it has. For every gallon of milk, there are probably 30-40 other places where increased oil prices have had an incremental effect on that one gallon. The same holds true for track and just about everything you can imagine. Some industries work on a slim margin of profit. Holding the price down, might bankrupt that industry. All they can do is pass the costs on to the consumer. Those who work on a larger margin of profit, might be able to absorb the increased cost, but only to an extent. Their answer to cost increases is to cut the labor cost through layoffs, early retirements, etc.</p><p>     There isn't much the consumer can do about it. Screaming about high costs and boycotts has little or no effect on the problem. Since everything is geared to oil prices, the only way costs will come down is by a reduction in oil price. Don't blame the track maker. He has to increase his prices to stay in business. Otherwise we will just have to do without track.</p>
Tags (Optional)
Tags are keywords that get attached to your post. They are used to categorize your submission and make it easier to search for. To add tags to your post type a tag into the box below and click the "Add Tag" button.
Add Tag