Local economist explains indicators that gas prices may be peaking.
With prices soaring over $4.00 a gallon, drivers hope prices have reached their max. According to a local economist, there is evidence to suggest they may have. "I wouldn't want to say with a threat of losing my life that they have," said Bill Johnson, an agriculture economist at Joliet Junior College. "I'd say there is better than a 60 percent chance that they have peaked or are close to peaking." Johnson cites two examples pointing to what he believes are indicators of a peak. First, he said that the relationship between the price of gas and the price of oil are inflated. In 2008, we had similar gas prices to what we have today. However, the price of oil was $148 a barrel then. Whereas today's oil prices are about $110 a barrel. A …
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For every dollar consumers spend on food, only a fraction makes it into the farmers' pockets. Find out what really makes our food costs rise.
It is little consolation that Americans pay the lowest percentage of income for food than any other country in the world. We also have been paying the lowest percentage of our income for gasoline. "We have been getting an incredible bargain for food for a long, long, long time compared to other countries," said Agriculture Economist Bill Johnson. In last week's Ag News, Johnson helped us understand how the prices of corn affect the average consumer. This week, we are going deeper in the what and how and why of food prices as they relate to farmers. Johnson is finishing his 43rd year teaching ag programs, including economics and marketing, at Joliet Junior College (JJC). The JJC ag program is widely respected as one of the top in the …
Bob
6:50 am on Saturday, April 30, 2011
I agree with Bob, as long as there is greed it will always be high, our only solution is to limit our purchases, the same goes with sporting events if we refuse to pay there inflated prices maybe a family outing will be affordable again. more ›