Rising fuel cost is creating havoc in every single economies worldwide. This one simple price hike has very significant and damaging effects, not only on businesses, but on individual folks like you and I.
While rising fuel costs has direct impact on certain types of industries (such as energy, steel, etc), other industries such as fast food industries jump at such opportunities to declare higher prices on their goods as well. After all, its only human for us to use any excuse to increase price of our goods so as to improve profitability, whether our businesses is directly or marginally affected by such price increase.
When food vendors start pulling in larger amounts of revenue, landlords will jump on the band wagon by raising rentals so as not to loose out on increase profits.
While we may be witnessing inflated prices in every single thing around us, the one thing that remains relatively constant is our wages. If only wages can increase in tandem with the rate of inflation .... While civil servants benefit from the government's generosity through high wage increases, employers of non-related government business concerns are less inclined to follow in the footsteps of the government. So where does that leave us - those of us who work in the private sector?
In countries where labor union is weak or where its government does not lay down strict guidelines on minimum wages (to be reviewed regularly based on current cost-of-living standards), this poses a huge problem for private sector individuals. As long as salaries increase at marginal increments compared to rocketing inflation, it becomes increasingly difficult for low- to medium- income class earners to make ends meet. When this happens, there will be a social fallout effect, whereby countries may face increasing crime rates, particularly in the area of robberies.
Its a vicious cycle folks!!! Like it or not, we are, each of us, killing ourselves through our own actions, be it as an individual or as a business concern. Our inability to conserve energy is directly contributing to the fuel/energy crisis that the world is currently facing and any social fallouts that we are facing, or will experience in increasing frequency, is solely of our own creation.
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