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Everyday Effects of High Energy Prices Thread
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Hogan
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PostPosted: Sun Jun 01, 2008 9:30 am    Post subject: Everyday Effects of High Energy Prices Thread Add User to Ignore List Reply with quote

I am going to start posting news links in this thread about how high oil and gasoline prices are affecting the average person on the street in everyday life.

Everyone please feel free to post any articles or personal experiences about everyday effects of high energy prices on the average person today.


California public schools raising school lunch prices due to high oil and fuel costs

Various California public schools around the state are raising cafeteria lunch prices by between .25 and .50 cents per lunch due to food and oil price increases. That's a pretty big price increase. This is going to hit poor families the hardest.

video link


Last edited by Hogan on Sun Jun 01, 2008 11:11 pm; edited 5 times in total
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PostPosted: Sun Jun 01, 2008 9:36 am    Post subject: Re: The everyday effects of high oil and gasoline prices Add User to Ignore List Reply with quote

Americans eating out less, buying more generic brands

Quote:
Stung by rising gasoline and food prices, Americans are finding creative ways to cut costs on routine items like groceries and clothing, forcing retailers, restaurants and manufacturers to decode the tastes of a suddenly thrifty public.


Quote:
Spending data and interviews around the country show that middle- and working-class consumers are starting to switch from name brands to cheaper alternatives, to eat in instead of dining out and to fly at unusual hours to shave dollars off airfares.

Though seemingly small, the daily trade-offs they are making — more pasta and less red meat, more video rentals and fewer movie tickets — amount to an important shift in consumer behavior.

Behind the belt-tightening — and brand-swapping — is the collision of several economic forces that are pinching people’s budgets or, at least, leaving them in little mood to splurge.

The price of household necessities has surged, with milk topping $4 a gallon in many stores and regular gasoline closing in on $3.60 a gallon nationwide.


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Demand destruction. Not pretty.
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PostPosted: Sun Jun 01, 2008 12:01 pm    Post subject: Re: Everyday Effects of High Energy Prices Thread Add User to Ignore List Reply with quote

There was a piece on the news last night about parents taking their kids to thrift stores for prom outfitting. They interviewed several people in different areas and the universal theme was that it was because of high energy costs. They had to find ways to cut back on spending.
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PostPosted: Sun Jun 01, 2008 1:34 pm    Post subject: Re: Everyday Effects of High Energy Prices Thread Add User to Ignore List Reply with quote

Thanks, Drifter for this thread...I think these are important bits to be aware of, as we all move towards a new energy world.
My husband mentioned that the last few times that he's gone to the gas station, he's noticed even amounts on the sale amount....like exactly $20 or $30. As if people have only that amount to put in the tank, and can't afford to fill 'er up. He said he'd never seen that before.
Also, he works in the tire industry, and he said that there is a remarkably longer period of time now that people go before buying new tires. I imagine the retread business is booming, for trucks.
As I walked home from an appointment Friday, I noticed quite a few more backyard gardens than in past years...one household in my neighborhood had a little stand where he sold peppers. Well, he quadrupled the size of his garden...it now takes up most of his backyard.
Plus, I've seen an incredible amount of walkers, bikers, and scooters out and about recently.
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Hogan
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PostPosted: Sun Jun 01, 2008 1:41 pm    Post subject: Re: Everyday Effects of High Energy Prices Thread Add User to Ignore List Reply with quote

mommy22, thanks for that informative post. You might want to check out this interactive graph showing American spending habits. Very interesting to see where people are cutting back or spending more:

American Spending Habits Graph
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PostPosted: Sun Jun 01, 2008 4:42 pm    Post subject: Re: Everyday Effects of High Energy Prices Thread Add User to Ignore List Reply with quote

Drifter wrote:
Various California public schools around the state are raising cafeteria lunch prices by between .25 and .50 cents per lunch due to food and oil price increases. That's a pretty big price increase. This is going to hit poor families the hardest.

video link
Children from poor families should be able to get reduced costs/free school lunches. The National School Lunch Program.
Quote:
The lunch program must be open to all enrolled children. Free or reduced price meals must be provided to those children who qualify for such benefits according to specified family size and income standards.

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mommy22
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PostPosted: Sun Jun 01, 2008 6:02 pm    Post subject: Re: Everyday Effects of High Energy Prices Thread Add User to Ignore List Reply with quote

I heard that the amount of families qualifyinf for these meal programs have been going up...I wonder how the price of the meals will affect their school system's meals quality) and the availability to lower income kids. Also, will that put more middle class children on the borderline as to whether or not they can afford to eat lunch every day?
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PostPosted: Sun Jun 01, 2008 8:23 pm    Post subject: Re: Everyday Effects of High Energy Prices Thread Add User to Ignore List Reply with quote

Drifter wrote:
Quote:
This is going to hit poor families the hardest.

What won't?

School lunch programs could do with locally grown produce.
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Hogan
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PostPosted: Sun Jun 01, 2008 9:35 pm    Post subject: Re: Everyday Effects of High Energy Prices Thread Add User to Ignore List Reply with quote

States grapple with fuel costs for school buses

Quote:
The reality of rising fuel costs students in a Tennessee school district their bus ride to school this week on the last day of the year.

That's a minor inconvenience compared with what might happen this fall in Minnesota, where a district west of Minneapolis plans to eliminate classes every Monday to come up with the extra $65,000 it needs to fill its buses' tanks.

"I know $65,000 may not sound like a lot, but it's more than one teaching position," said Greg Schmidt, the superintendent in the 700-student MACCRAY district.

And in North Carolina, Nash-Rocky Mount Public Schools teachers have scaled back the number of field trips this spring to save fuel, transportation director Binford Sloan said.

The skyrocketing costs at the pump are forcing educators nationwide to trim programs, curb spending and cut down on fuel consumption. Schools are employing unusual cost-savings measures to salvage busted budgets, while lawmakers grapple with how to pay for popular classroom initiatives threatened by the need to pour more money into the fuel tank.

Nash-Rocky Mount schools burned through about $729,000 in fuel in the last fiscal year — nearly twice as much as in the previous year, Sloan said.

The fleet gets about 7 miles to the gallon, which means the district burns through 7,500 gallons every 3 1/2 school days, Sloan said. Recent buys have cost him close to $29,000.

"We've tried pretty much all that we can to save and improve efficiency," Sloan said.


article link

That school district spends $30,000 for bus fuel every 3 1/2 days?! Damn Shocked

The system of suburban sprawl was built upon and necessitates the availability of cheap oil and gasoline. Looks like the system is slowly starting to break down now.
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PostPosted: Sun Jun 01, 2008 9:49 pm    Post subject: Re: Everyday Effects of High Energy Prices Thread Add User to Ignore List Reply with quote

Stung at the Pumps, More Hop on a Bus

Quote:
Transit systems that ferry commuters into Washington from outlying regions are experiencing significant ridership increases as some gas prices pass $4 a gallon, and Metro officials caution that trains could be overwhelmed if prices go even higher.

Officials are looking for ways to buy or lease more buses, expand parking, encourage employers to stagger work schedules and persuade current riders to avoid the peak of the morning rush period.

In Loudoun County, ridership on county-run commuter buses jumped 23 percent in April from April 2007. Officials scrambled to put additional buses into service, two months ahead of schedule.

In Maryland, ridership on the 15 commuter bus routes into Washington increased 15 percent in April, double the rate of increase from last fall
, state transportation officials said. On Wednesday, state officials approved $3.3 million to expand bus service on nine of those routes.


article link



Ridership on mass transit breaks records

Quote:
More people are riding the nation's buses and trains, breaking records for the first quarter of the year. Transit operators expect the increase to be greater in the second quarter as gasoline prices soar.

A report set for release today by the American Public Transportation Association (APTA) shows trips on public transit January-March rose 3% over the same period last year to 2.6 billion rides. Light rails saw the biggest jump: 10% to 110 million trips.

Early figures for April show ridership going even higher as gas hovers near $4 a gallon, says APTA president William Millar.

In 2007, he says, "we had higher numbers than we've seen in 50 years, and the trend is continuing in 2008."

Still, only 5% of workers commute by public transit, according to a U.S. Census survey in 2006. Millar says no more than 20% of households have easy access to buses or trains.


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People are finally starting to gravitate towards public transportation. Time to buy more buses and build light rail systems!


Last edited by Hogan on Sun Jun 01, 2008 10:25 pm; edited 1 time in total
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PostPosted: Sun Jun 01, 2008 9:55 pm    Post subject: Re: Everyday Effects of High Energy Prices Thread Add User to Ignore List Reply with quote

Gas costs cut into vacation travel

Quote:
More than a third of Americans are rethinking vacation plans because of record-high gas prices, a USA TODAY/Gallup Poll shows, and some destinations are feeling the squeeze as the summer travel season officially begins this holiday weekend.

Of those altering travel plans, 37% are scrapping trips and one in four won't go as far or stay as long, the poll finds. "We're pretty close to the toughest summer ever, at least for consumers," says Rick Seaney, CEO of Farecompare.com, an airfare search site.

"It's looking very bad. People just aren't coming," says Jackie Gentry, manager of the Seashore Inn in Seaside, Ore. The hotel isn't sold out for Memorial Day weekend, she says, "and we have hardly any reservations for June." A room that usually goes for $139 can be booked online for $109.

Prices are reshaping the season:

•Reservations for 2,500 campsites and attractions on federal land show people are sticking closer to home. Residents of 33 states who made reservations from February to April for this vacation season chose more destinations in their own state than in 2007, a USA TODAY analysis of federal data shows.

At Kentucky's Mammoth Cave National Park, tour reservations for this weekend are down from a year ago, says deputy superintendent Bruce Powell, who expects flat summer attendance. Scott Gediman, spokesman for California's Yosemite National Park, says European tour groups are boosting attendance.

•Fewer users of Hotels.com plan week-long vacations that involve flying, says Scott Booker, the site's guest advocate. "They're opting to do shorter stays, weekend trips and stay closer to home," he says.

•Gasbuddy.com, which operates 181 websites that track gas prices, gets about 5 million hits a day, up from 1.2 million in January, says co-founder Jason Toews. Almost 37,000 people replied to a website poll asking whether they'll drive less this summer; 75% said yes.

•Six Flags has lowered prices to attract families who have less to spend, CEO Mark Shapiro says. At 11 of its 12 U.S. theme parks, people who buy tickets online pay children's rates instead of adult fees.

•Three-fourths of the USA's 8.2 million RV owners plan to use them at least as much as last year, says Kevin Broom of the Recreation Vehicle Industry Association, but "people are staying closer to home."

Sheila McConnell, a Chicago bookkeeper, says gas prices prompted her family to cancel a driving vacation in South Dakota. They'll save at least $200 by driving to Wisconsin instead, but her three kids "feel cheated."


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Demand destruction is a vicious cycle. Looks like tourist destinations are going to get hit hard. Will lowering prices change tourist's minds?
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Hogan
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PostPosted: Sun Jun 01, 2008 10:05 pm    Post subject: Re: Everyday Effects of High Energy Prices Thread Add User to Ignore List Reply with quote

Gasoline isn't only rising cost for drivers

Quote:
Does filling the gas tank leave your wallet empty and spirit sputtering? Get used to both because almost everything car-related is costing more.

From oil changes to parking lot fees, sticker shock will make this summer even stickier.

"Everything is more expensive," said Raj Amber, a partner at AAA Limousine in Alexandria, Va., bemoaning the recent oil change cost increase to $30, up from $25.

Amber's frustration is common among consumers facing $4 a gallon for gasoline, $45 a day for car rentals that cost $31 last year, and bigger bills from mechanics, tire shops and parking garages. Cost-fighting tactics are somewhat schizophrenic: vigilant tune ups to stave off new car purchases or bare-minimum crucial fixes combined with a hope-for-the-best mentality.

Fuel remains the single biggest expense for car owners over the lifetime of a vehicle at about 30 percent of costs, followed closely by depreciation and insurance. But the prices for maintenance and repairs, which combined account for less than 10 percent of an automobile's costs, are creeping up.

Travel agency AAA estimates that the average cost of owning and operating a car in 2008 will be $8,121, up from $7,823 last year.

"Purchases I'm making for our cars now are all driven by a preventative mentality," said Tony Farrell, a freelance writer in Richmond, Va., who has a 2001 minivan and a 20-year-old Honda Civic he had considered selling. "A year ago, I would have let it run ragged. Now I want that car in good working order because I want it to last."

Mirwais Niaz, manager of a Midas franchise in Arlington, Va., said many customers are opting for the most basic repairs, trying to buy time and save for more expensive work.

For example, a recent Midas customer whose car needed extensive brake work told Niaz: "I don't care about the squeaking, just do something so the car stops." Another customer, whose car needed a transmission fluid flush asked if it could last another three months without the $159 service since gas prices had sapped his funds.

Shell Oil subsidiary Jiffy Lube has seen its car count drop by roughly 2 percent in the last year as gas prices have surged and new vehicle technology gives drivers a better idea of when maintenance is needed, said Lisa Carlson, global director of marketing for Jiffy Lube International.

In big cities, drivers are finding it more expensive to park. An annual survey by real estate services provider Collier's International found that daily parking rates rose in 2007 for the fourth straight year, a trend the company expects to continue in 2008.

Indeed, some automobile-related businesses are trying to avoid passing their rising costs onto customers.

To retain his best limousine clients, Amber has not yet raised rental rates but has been forced to include a fuel surcharge of up to $5 on some trips. Customers, he said, "are not happy."


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There's more expense to owning a car than just high gasoline prices. Wink
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PostPosted: Sun Jun 01, 2008 10:12 pm    Post subject: Re: Everyday Effects of High Energy Prices Thread Add User to Ignore List Reply with quote

Restaurants tighten belts as diners pinch pennies

Quote:
The most popular item these days at the Casablanca Seafood Bar & Grill is the $25.95 grilled seafood platter loaded with fish, shrimp, clams, oysters and more.

Bargain-hunting customers love it because the platter is big enough for two or even three people to share. But it's not helping the bottom line at Maribel Sanchez's restaurant on the Miami River.

Restaurants like Casablanca are battered on one side by skyrocketing costs of food and the fuel to transport it, while business is declining as cash-strapped customers increasingly view dining out as a luxury they can't afford.

To compensate, restaurateurs are getting creative. Some are simply raising prices or switching to lower-priced ingredients. Others are reducing portions, introducing menu items that cost less to make, and cutting staff members or hours. Some are offering discounts or extras like free wine or dessert.

Business has fallen off all over. During the week, Casablanca's dinner business has been cut in half compared to last year, Sanchez estimates. Lunch traffic is down about a third, as more downtown Miami workers opt for a brown bag except on Fridays.

The only bright spot is weekend business, which has remained steady.

''Nobody has money,'' said Sanchez, who notices her customers increasingly paying with credit cards.


Quote:
Everyone in the restaurant industry is feeling the impact of soaring food prices, which have risen 15.5 percent between February 2006 and February 2008, according to the National Restaurant Association. The jumps are even more dramatic on some individual commodities like flour (up 87 percent) and eggs (up 73 percent).


Quote:
DeVito South Beach took the tomahawk ribeye steak off its menu when the wholesale cost jumped from about $25 a pound to $40 a pound.

''We would have to be selling the steak for $120, which is ridiculous,''
said co-owner David Manero, whose business is down about 8 percent on certain weekdays. ``It's embarrassing to present food for that kind of money.''


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A $120 steak? Shock
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PostPosted: Sun Jun 01, 2008 10:28 pm    Post subject: Re: Everyday Effects of High Energy Prices Thread Add User to Ignore List Reply with quote

Youths carpooling, working longer shifts to offset gasoline prices

Quote:
With gasoline prices hovering near $4 per gallon, employers are trying to attract youths to minimum wage-paying jobs with longer shifts and more flexible schedules.

Valley business operators said the area is bucking the national trend of fewer summer jobs for teens due to a slowing economy, but agree everyone is feeling the pinch.

"There are always jobs in this business," said Gary Daddario, manager of the McDonald's fast-food restaurant in Shamokin Dam, where 60 percent of the 67 employees are teens.

While jobs are available, the pool of candidates seeking minimum wage jobs for $7.15 an hour has changed because of soaring fuel prices, Daddario said.

In May 2007, Valley motorists paid about $3 per gallon of gasoline. Today, a gallon costs about $3.95 and the price is climbing almost daily.

Rising gasoline prices mean an employee has to work about 45 minutes longer just to cover the added expense of commuting to work every day.

"I've lost a few workers from the Middleburg area who found jobs closer to their home," Daddario said. "Most of the kids drive, but more of them are walking or riding bicycles to work. Even some of our full-time staff are riding bikes to save some money."

Lora Morningstar said she's hired 22 youths to work at her Rita's Italian Ice stores in Hummels Wharf and Lewisburg, the same number as last year.

"I'm optimistic, even with the price of gasoline going up, that people will want cool treats," she said.

To help her young employees who are also paying more at the gasoline pump, Morningstar said she's scheduling longer shifts to make it worth their time and money to come to work.


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Walking and riding bicycles.. what a novel idea. Very Happy
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PostPosted: Sun Jun 01, 2008 10:33 pm    Post subject: Re: Everyday Effects of High Energy Prices Thread Add User to Ignore List Reply with quote

Food and gasoline: Soaring prices hit the poor hardest

Quote:
Rising fuel prices. Rising food prices. Carol Sanders knows all too well they can take a very human toll.

Sanders, of Lexington, had been living in a three-bedroom apartment with her three children -- an 11-year-old and 8-year-old twins. But in late December and early January, she said, making the $500 monthly rent and paying her other bills too became overwhelming.

Sanders, who is raising the children on her own, became homeless and sent the kids to live with her sister.

"I didn't want them to go through the struggles that I was about to go through," she said. "It really took a toll on me and the kids."

When the economy takes a tumble, the poor are often the first to feel the pain.

Representatives of several local social service agencies said they're seeing more clients seeking help in an environment in which gas and grocery prices are soaring.

"The economy is affecting the low- to moderate-income individuals a great deal more than it is anybody else," said Johnny Cantrell, chief executive officer of Consumer Credit Counseling Service of Central Kentucky. He also oversees the organization's offices in eight Midwestern states.

Many families, Cantrell said, live on budgets of just $500 or $600 a month, meaning increases in the cost of food and gas make a big dent. "Anything is going to wipe that budget out," he said. "And that's what we're seeing."


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Poor people are always the first to suffer from higher energy and food prices. But everyone will soon be suffering from price increases.
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