• doggydog2 [none/use name]
    ·
    3 years ago

    do gas prices not increase transportation costs increasing the price of everything along the supply chain? honestly not sure how it works

    • SpaceDog [he/him]
      ·
      3 years ago

      Not just transportation, but production itself!
      Almost everything that is produced requires burning or converting oil in its production process. Plastic is made from oil. Fertilizer is made from oil or gas. Most plant agriculture is dependent on fertilizer, and 99% of animal agriculture is dependent on plant agriculture that is dependent on fertilizer, and also uses petrochemicals to run the animal factory farms.

      You can go along the list of things that are made, and you'll find that almost everything requires a low oil price to remain cheap.
      So everything will get more expensive. But working class people require things to remain cheap so that they can buy them. So they don't buy them, so sales drop, which drives a drop in sales in oil, which drops the price of oil. But oil producers need high prices in order to continue to extract hard-to-reach oil. So we hit an economic crisis.