npwsol - 4:53 pm on Jun 25, 2008 (gmt 0)

The quick rise in gas prices definitely has something to do with it, considering that shipping prices are very typically offset to the consumer. We're paying an extra buck fifty for every gallon those trucks use (spread out over their entire payload, of course). It's not significant, but as consumers see prices all around rising, they'll panic.

Couple that with the consistent decline in value of the mighty dollar and corporations not adjusting their pay scale to the increasing cost of living, and yes, we have a real problem. Federal Minimum Wage has been increased, but that's still ignoring the fact that the Federal Minimum wasn't enough to live on before this latest spike in prices, and you'd best believe that even with the raise it's still not realistic.

What companies do in the coming months will resoundingly affect what happens to the economy. Americans have slowed down on spending because they are afraid they cannot afford to spend the money (personally I know I can't). Companies that can afford to need to drop their prices and cut costs without cutting jobs.

How about we kill two birds with one stone and increase domestic production? We can start by making our own action figures instead of shipping them in from halfway around the world.

Companies that do so may not be very profitable in the coming quarters, but there is no better way to kickstart the economy.

Call me pessimistic, but that won't happen. The companies that are profitable enough to do this are typically international companies who will be more inclined to increase their profit margin by shifting focus to other markets, exacerbating the situation in the States. Is this to be the fall of our Roman Empire?

December 21st, 2012