The Price of Gas
The price at the pumps has been a hot topic around the newsroom, not only in our line-up but also in general conversation.
My co-host Mike, came into work on Monday, appalled that it cost him 65 dollars to fill up his car. Like mine, his is a little 4 cylinder and, until now, it has not cost much to run.
We began talking about what that cost is doing to the rest of our budgets. Sure enough, like our fellow Canadians, we’re eating out less, cutting back on little luxuries and considering alternate modes of transportation.
It’s a small glimpse into what is fueling a much larger problem. The country is headed towards recession. It seems that people like Mike and me who are trying to ride out this storm by cutting costs are actually making it worse.
Companies are going to continue to cut staff or increase costs to keep profits up because people are not buying their products. In turn this is going to have a trickle down effect to the consumer who will also make cuts, thus adding to the snowball.
I’m no great economic mind, although I recall doing well in the class. I don’t know what the answer is to this problem. But I do know it’s likely going to get worse before it gets better.
As Mike said yesterday, in years to come we’ll be looking back at this time and calling it the recession of ‘08.
Good luck,
Kate