Quote Originally Posted by admin
oil is a factor but there are tons of factors... living standards and goods just cost more in general. if we could point the finger at one thing like OIL you would see price of everything drop w/ it... say gallon of milk... have prices dropped? No. OIL is under 100$ a barrel why hasn't milk? what are the factors? production cost, competition, regulations, taxes, etc, etc, etc
This is true.

We will use milk becuse you brought it up.

Feed for the cattle is more expensive because of the expanded use of ethanol.

Cattle numbers are down as more farmers are seeing more money in growing corn for ethanol. With less cattle, there is less milk from the source.

Transporting the raw milk to be passturized is more expensive because of increased fuel costs.

Packaging the milk in plastic containers is more expensive because plastic is a petroleum product. Also added in the costs of trandporting the packaging to where the pasturizing is done.

Transporting the packaged milk to the grocery store costs more because of the higher gas prices.


My point: Oil isnt the ONLY factor, it is one of many, but oil is still the main ingrediant in many of the individual factors. The other major factor being using food for fuel.

The law of unforseen consequences comes into effect also as more farmers are trading in their cattle to grow corn.