Yes 1 billion less miles driven this year by Americans so far means impacts to the Big Amusements Parks, vacation resorts and small time businesses that cater to vacationers. Will this impact state revenue like Florida is now experiencing? Yes a decline in miles driven, car pooling, use of public transportation, when it can be found, is impacting state revenues. The decline in tolls collected and the availability of ticket income are simple examples of major impacts to local government and police forces. They can't pull everyone over, can they? Yes and who will process them with the courts being reduced in size?
Well what does one expect with the fuel prices what they are? GM stocks fell to a new 27 year low with other Americans car manufacturers right behind them. They are saying that market won't recover until 2009. The real question is will it ever with fuel prices as they are, the cost of those cars, just who can afford them but those who have or a person having to have perfect credit to even finance a purchase. Throw in that they claim these cars get X miles per gallon when they don't and you have an another issue. Hey they did so good a job at dismantling America they out did themselves.
Now if we switch gears over to purchasing we see that is also on the downside. Oil a major player in much of what is manufactured is hitting those markets as well. Transportation costs driving the prices higher and higher. Consumer confidence was just over 57% even with a projected 62% projection, the fifth straight month of decline. One might suspect these figures could be even less then what provided. Well certainly the haves, those who got, are also reducing their spending and even with the stimulus. The small business owner who once was doing well is feeling the pinch and is starting to get worried about his customer base. Yes, you know those average Americans who supported them and who now can only afford the necessities like food, and shelter. Yes and even the big supermarket chains are feeling the pinch. Raising prices but lowering the quantities and size to maintain profit.
So one must ask just why would average consumers opinions be good? Just why when you apply nothing more then simple logic? Do they not see it all about even in their own families? Layoffs, low paid jobs, increasing costs and no future or real facts to change that opinion.
Of course we could digress about the Credit Card snowball that in my opinion is ready to burst open as people try to survive until hope kicks in. Yes and the very sad part about all this is when will this hope arrive and in what form and for who?
So in my opinion the Domino effect must continue because, well it is simple economic physics. The problem has built up enough momentum that it requires action but simply put what immediate action will work? Well here are just two or three right off the bat that would have immediate impact with little to no cost to the taxpayers.
1- Stop Credit Usury immediately, reducing the rates, fines, penalties and fees to where a fair charge is made and allowing for a reasonable payback plan. That would have major impacts all across this economy immediately. Would they, no.
2- Stop the bail outs of these big investors and provide immediate help to average Americans in Foreclosure, right Mr. McCain, Obama and Hillary, these people are Credit Worthy if not being gouged.
3- Start a Public Works rebuild America as Roosevelt did getting people back to work immediately rebuilding our sorely needed infrastructure.
4- Enforce current immigration law and close our borders as part of that work program. Heavy fines for all employers currently having illegal workers on their payrolls and jail time if required.
Hey its your call. Yet do nothing and The Domino Effect continues.
Robert T. Melaccio Sr. 2008 Copyright ©2008 Robert Melaccio |
