I have never thought that filling up my Grand Vitara would cost me $81. My last trip to the gas station was a week ago, the tank was still half-full but I knew that the storm would have some nasty effects on the gas supply…nevertheless, it didn’t really hit me before today.
And we’re not done paying, while driving a private automobile is essentially a personal choice, everything we buy has to come here on planes, trains and 18-wheeler trucks. I really don’t want to know how much it will cost to fill-up one of those but these costs will be passed down to the consumer, even if that consumer chooses to bike and to use public transit. Winter will also be much more expensive for those who heat their houses with oil or natural gas. My house is heated by electricity. Do you think I’m worried about Hydro raising up my rate by 2% ? My neighbor’s bill to Esso will probably be twice what it was two years ago.
As discussed here and here, the effects of the storm on the economy and public confidence could very well dwarf the recession that followed 9/11. Even without taking oil into account, any geography nut will point out that New Orleans was built there for a very good reason. Half of the US ships its bulk goods down the Mississipi while a lot of imports snake their way upstream. Although it’s harvest season in the Midwest, that grain is going nowhere.