You are correct that increased fuel prices did not lead to increased costs – for most things. That is because the US has a very energy efficient economy. Using 2008 as a reference year, the US generated 54.8¢ in GDP per kWh of energy consumed. For China, the same figure was 18.2¢, whereas it was 17.2¢ in India (Sorry I don’t have a reference for this. Poke around a little on Wikipedia and you can find the energy consumption and GDP data. I presume your math skills are up to a little division. If not, tap into that transoceanic fiber optic cable and ask an engineer in India.). This means our economy is some 3x less sensitive to energy prices than that of India or China..But that’s all besides the point. Nothing you say counters wasradar’s statement of fact that a small business either takes it in the pants or raises prices. And when everyone raises prices, you have inflation. It was true before the internet and it will be true after whatever replaces the internet.
May 31, 2016
May 24, 2016