Rising Gas Prices

The rising gas prices have caused every one of us to re think how we spend our money. The prices of gas have caused Americans all over to think about other ways for them to save money and ways to save gas. Car companies have seen a huge drop in the sales of larger cars and an increase in the sales of smaller cars. The higher gas mileage cars are in a larger demand now than ever before. Families in America with a smaller income are feeling the effects of the rising prices more than most people. They have to adjust their life styles in order to afford the price to keep their car running. The rising prices on gas are also changing the price of food. The cost of gas has caused truckers and distributers to charge more to deliver food because it is costing those more in gas to get the supplies there. This creates a ripple effect because the truckers raise the prices to deliver because their gas prices are higher and that causes the food prices to rise as well. Another factor that is causing rising prices is the introduction of ethanol. Ethanol is made from corn and when the corn that is being produces across America is no longer going only to food but to ethanol production; it causes the price of corn to rise. Rising corn prices ripple to other areas too, for example cattle are fed corn and when corn becomes more expensive, the cost to feed the cattle goes up causing meat, milk, and cheese prices to also rise.

Prices of goods

Many companies are raising their prices because the prices of other things they need to produce and distribute their product are becoming more and more expensive for them. The price of wrigleys has rises along with Hershey, Kraft, Folgers, Charmin, Bounty, Starbucks, Colgate, and General Mills. all of these companies are raising their prices to account for their own rising prices. Overall this rise in the prices of goods has caused consumers to save money everywhere they can. the result of the consumers watching their money more closely means that the amount of sales is dropping too. This on top of everything else is costing the companies more.

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