Sorry I’ve been gone for awhile. Today at work I came across an article in our local paper titled Spending Rises, I had to post about it. It either was the most optimistic article ever written or the writer was a complete idiot with no journalistic opinion. The article focused on a rise in national consumer spending; agreeing with economists’ claims that job gains offset gas and food prices. Ok I’ll acknowledge that the unemployment rate is going down and has been since its last peak in Jan 2011, where it reached 9.8% (U.S. Bureau of Labor Statistics) Check it out on Google. However, gas prices along with crude oil have both continued to soar steadily upwards. That last record that the EIA, U.S. Energy Information Administration, had on 05/06/11 sited crude oil at $116.91. May 2010 it was at $70.90 and those all are domestic prices which are much lower than imported oil. Right now my commodities widget say Crude Oil is at 99.65 still $30 up from last year, which we all know was a worse economic climate than this year.
These spikes cause prices in your local store to go up. Food, paper products, electronics, plastics (which is in or surrounds everything); anything that is made in a factory and has to be shipped to you or a store near you is affected by oil/gas prices. You know the only thing that’s not affected by gas/oil prices, your salary. Our salaries are not raised in direct correlation to oil/gas, in most cases it has the inverse effect. People lose their jobs because employers have to make their services cheaper to fight rising prices in all the products and services they need to operate. And what are the first major assets companies let go of? You guessed it, their employees. Even if you still have your job your annual bonus isn’t getting larger because we’re in an economic squeeze, in-fact it may even be getting smaller.
This is just one thing this article just seemed to overlook, then they got into the signs that the economy is getting better. The article quoted the U.S. Department of Commerce saying “More expensive gas boosted retail sales 0.5% in April, the 10th straight month of gains.” Ok, sure if retail sales go up that means consumers are spending on non-essential which means we have cash to spare, right? WRONG! Sales are only up because the prices of the items themselves are up. For example your favorite pairs of jeans that cost usually cost (your not gonna believe this number when you see it) about $7-8 to make now cost $10-15 to make. So the company raises their market value from $30-50 to $60-80. Thereby escaping losses due to manufacturing cost and recessional shopping. So that was essentially ignored by the article. It did mention that “Companies also paid more for raw materials and factory goods in April,” but failed to mention the correlations to rises in market values. They acknowledge the Dept of Labor’s findings that there was a rise of 0.7% but then minimized that fact by stating that the gain if you take out perishable food (which includes meats, milk, bread, eggs, fruits, veg; staples in any diet) & energy cost it was only 0.3% same gain as March. Hold up Dept of Labor did you just try to, as Mr. Brown from the Madea comedies would say “Munipudip Me?” The gain in March including that stuff was 0.3% April is was 0.7%, come on!
Stop lying to me, I’m talking to you “economist”, excuse me “lying” was a harsh word. I should have said “Stop making the issue complicated!” Just tell me exactly where we are. Whenever they get on the news my eyes roll so far around I’m scared they may get stuck. They get on the air and just babble and you hear a lot of “UHHHHH, Well, inflation, inflation prices, overall, blah, blah, blah” Just watch this.
Bernanke sounds like a blathering idiot trying to confuse other (I won’t assume the American public is idiotic), lets just say ignorant people. I just want an economist for once to give it to me plain and straight, if we’re doing bad just say so. Don’t try to sugar coat it or confuse us with your “economic-babble.” Say what is truly going on in the market, I promise we won’t shoot you. Or at least I promise I won’t shoot you. Idk, I don’t claim to have any solutions but I’m telling you they don’t have any either. It’s just frustrating for them to be the only voice for the status of the economy, because they speak excuse my french “Sh*tnese or Sh*talian” All I know is that they and our President, God bless him I wouldn’t want his job right now, better figure out how to bring my gas prices down from $4.00. Remember growing up (talking to the 80’s babies) and gas was $1.35 a $1.20 in some remote places. Forget God Bless America; put a comma in there take a moment for effect GOD, BLESS AMERICA….PLEASE!