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Oil Prices, Our Economy and Katrina
With the onslaught of Katrina, how will the world survive the
economic chaos that is about to unfold? Our economy cannot
sustain any more surges in oil prices with the AP wire reporting
$5.96 a gallon for regular gas in some areas of the U.S.
Most U.S. cities aren't set up with mass transportation, and the
typical American is required to travel up to 50 miles a day or
more for their job alone.
U.S. resident made less money than they spent for basic
necessities prior to Katrina, how will they cope after?
*Average Monthly expenses, based on two incomes
Telephone $37.93 Electric bill $99.65 Water w/garbage
$80 Food $575 Gasoline (two cars, $2.53 per
gallon.) $969.60 Mortgage Payment $2321 (Based on a three
bedroom home in GA. East or West you are looking at least a
$5463 mortgage.) Car Payment $289 (based on one car only)
Cellular Phone Bill $89.99 (family plan) Quarterly Car
Insurance $789 (two cars) Total basic expenses, with nothing
extra like car repairs, co-pays, medicine, school supplies,
clothing, and household necessities: $5251.17
The average pre-tax income based on the location above? Female
$2,047; Male $3,089
If you live on the East or West Coast, while income can be
higher, the average male making $4497 and females $3189, monthly
bills are substantially higher. The total average monthly
expenses in those areas? $9535.83. Pre-tax income? $7686.
How can the economy
continue to thrive, when most people in the
U.S. can't afford their monthly bills? A large mortgage broker
stated that 100% of their housing loans are now interest only
with buyers using their mortgages as loans. Buyers have been
banking on an escalating housing market. What will happen to
them once the full force of Katrina hits its mark?
Now with gas prices skyrocketing, people may not be able to keep
their jobs or they will have to "pay" to go to work, and with
the jobless rate of Katrina expected to hit 25%, how can the
economy survive?
What's the answer to our imminent economic catastrophe? I don't
know, but I can tell you that it feels like we are heading for
economic disaster of epic proportions if something isn't done
and done quickly. The end result will be a society that is based
on the really rich and the very poor. There will be no "middle
class."
With standards already being set at poverty stricken or
destitute, how much more can we sustain? How much more can the
world sustain? Jaci Rae "The Rae of HopeTM" www.jacirae.com
Copyright 2005
About the author:
Jaci Rae is the #1 Best Selling author of "Winning Points with
the Woman in Your Life One Touchdown at a Time" ISBN 0974622907
and "TThe Indie Guide To Music, Marketing and Money" ISBN
097462294X as well as the host of the Jaci Rae show. To hear
Jaci's popular show, with some of the top behind the scenes as
well as famous bands go to: www.jacirae.com click on the weekly
show link.
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