The Fits About To Hit The Shan

I received my quarterly 401(k) statement yesterday, and you'd think the economy was booming with the amount of money I made off my investments. Don't let "hope" and "change" fool you though...we're about to see another big blow to our already weakened economic health in the coming months if something doesn't change quickly. Can Americans handle another economic crisis and bailouts?

Why the gloomy forecast from an openly admitted non-expert on the subject? Look at recent history. It wasn't that long ago, after Hurricane Katrina, that our gas prices started to sky-rocket to over $4/gallon. Back then, the economy was still in good shape and the economic/housing bubbles hadn't burst yet. At first, it was something that we thought we could weather as we had to triple (or more) our gas budgets to get to and from work, had to cut down on vacations and road trips, etc.

The biggest blow wasn't our increase in fuel costs for personal consumption...it was the trickle down from all of the businesses and products we use on a day-to-day basis as they passed their added fuel costs on to the consumers. Pizza chains started charging a delivery fee. The cost of groceries went up (It wasn't more than 5 years ago that a 12-pack of soda cost $3 or less, now it's up to around $5..that's 67% inflation in 5 years!), airline tickets went up and they started charging for bags, contractors in the service industry raised their prices, and the list goes on and on. If you had your receipts and checkbook from 5 years ago and compared them to what you're paying now, you'd be shocked at how much of a difference it is from a mere 5 years ago.

The sad thing is, while gas prices receded back down to the $2-$3 range, those costs passed on to us didn't go down with them. Companies have been milking those "added fuel costs" for profit since they came back down below $3. Now, with gas prices starting to climb again, get ready for an increase in costs again as companies use it as an excuse to raise their prices again to "recoup the extra cost of fuel we incurred." Tricky bastards. Combine this with the still struggling job market, the lack of raises, bonuses, and benefits employees are receiving, and the unprecedented National Debt this country has accumulated, we're going to be China's "Bitch" sooner than later.

And PS - With George W. Bush and Dick Cheney more than 2 years removed from office, who are we blaming now for the current rise in gas prices? Either Obama's in bed with the oil companies too, or Bush/Cheney weren't responsible for it the first time around after-all.