PEANUT BUTTER AND PETROLEUM PRICES

 By: Jake Jakubuwski

Here’s the way I see it…

 Even with petroleum prices easing somewhat — although we’re still paying more for gas then we were last year — it’s easy to lose sight of the fact that what we pay for gasoline does not represent the full impact of steadily increasing fuel prices on our pocketbooks. When we buy gas, we tend to see only the immediate and personal shock of those prices when it costs us more to fill up our tanks today, then it did yesterday.

So what if you don’t drive, own a car or a gas-powered lawn mower? Even if you don’t buy gasoline or heating fuel — today’s petroleum prices are going to hit you square in your financial fanny! 

The higher fuel costs that cities, counties and states pay to operate their fleets, repair roads and build sewage systems, in turn, will ultimately trigger increases in property taxes, and “user fees”.

Increasing fuel costs will result in higher insurance rates for your cars, homes and businesses because the increased costs of manufactured, processed and salable commodities—including car parts and building materials—will affect the insurer’s financial risk. If it costs an insurer more to repair, replace or refurbish cars or cottages after an accident or disaster, those costs will be passed on to the policy holders!

When the higher costs of fuel inhibits travel and the motel industry suffers declining occupancies, they will not require as many maids to clean and “make-up” the rooms each day. Those unemployed maids may file for unemployment benefits which puts further strains on governmental coffers. Demands that will, in one form or another, be passed on to the consumer and taxpayer. 

Restaurants, movie theatres, pizza joints and paint stores will be affected by increased petroleum prices. The effects will be two-pronged: It will cost the businesses more to get the food, film and finishes that they sell delivered to the store —— and they will (If they are not already) suffer from declining sales because consumers who are putting more money in their gas tanks, will have less money to spend on discretionary purchases.

The peanut farmer is forced to pay more for fertilizer and tractor fuel to make their crop. When the peanuts are harvested, the crop is put on trucks and sent to co-ops, buying stations, or processors; where they might be turned into peanut butter, peanut oil or snacks. Then the jars of peanut butter and other peanut by-products are sent by rail and common carrier to wholesale distribution centers where it is loaded onto other trucks for delivery to your favorite grocery store or retail outlet. Each step in the process; from the farmer’s field to the grocery store shelf adds to the price the consumer will be required to pay because of increased petroleum prices.

At the grocery store we discover peanut butter is forty or fifty cents higher per jar then it was the last time we bought it. The maid who was laid off from the motel can’t afford the more expensive peanut butter unless she receives food stamps from a social agency. The cost of those food stamps will be borne by the consumer and taxpayer — that’s us!

Dow Jones, General Motors, Ford, lKimberly-Clark, Proctor and Gamble, Pete’s Plumbing and even the Solo Cup Company have fallen victim to higher energy costs and supply chain costs.

Obviously, nothing can be grown, manufactured, picked, processed, packaged or sold without considering and factoring in higher fuel costs—costs that are added at each successive stage of the chain from seed to sale—causing the prices of those items to escalate at an exponential rate.    

Since we, as consumers and taxpayers, are at the very end of the “supply chain”, we are stuck with the bill.

Every load of laundry, every flip of a light switch, every Big Mac and every stick of chewing gum will, and is, costing us more.

The cost of gasoline, at the pump, is only a small part of the inflationary feeding frenzy higher petroleum prices are creating. Even if you don’t drive, the peanut butter sandwich you had for lunch will cost you more: because petroleum prices are taking a bigger bite out of everyone’s wallet.

Dear Mr. President,

According to what I’ve read about your speech on job creation, one of the pivotal points seems to be lowering employee, and employer, contributions to Social Security. I can see how that might stimulate the job market and put a few bucks a week in many paychecks.

My problem is this: Since Social Security is already teetering on the verge of bankruptcy, wouldn’t a reduction in tax payments to the “plan”  hasten the demise of Social Security?

Now, Mr. President, I admit that I have some strange ideas about the economy and what is and is not good for it (Especially in light of our government’s determination to try to reduce our debt by increasing it) and I admit that I am not an economist and probably not even a good bookkeeper. So, maybe I’m missing something really important in all of this spendthrift syndrome that seems to have overtaken our entire government — starting with your office, sir.

I also readily admit that I have a hard time wrapping my mind around the concept of a Trillion Dollars. But recently, I read an analogy that I could understand. Basically, the writer said that if money was water and one dollar represented one drop of water, then an Olympic-sized swimming pool would represent a trillion dollars. Mr. President…that is a LOT of water! 

And, sir (Correct me, if I’m wrong), we  have something like THIRTEEN Olympic-sized swimming pools to fill …

So, I have to wonder, Mr. President, how does cutting income for the goverment (Reducing Social Security taxes and extending tax credits — even for only a year, or two ) help us create enough jobs and pay off the biggest National Debt we have ever faced.

Oh, one other thing I would like to know…how many jobs will your new(?) American Jobs Act actually create. I think we have lost, over the last four years or so, something like 15,000,000 jobs. If your proposal would asssure that a minimum of 5,000,000 jobs would be created, I think it might be worthwhile to consider. Otherwise, I think we will, economically, continue shooting craps with heavily loaded dice.

Unfortunately, Mr. President, in the same article about your speech, I read that “the White House” offered no figures on the number of jobs that would be created by the American Jobs Act.

I know, sir, that it’s easy for the Rebuplicans to blame the Democrats for our financial problems — and vice-versa — but I say that  it doesn”t matter who’s to blame. What I want to know who’s gonna fix the problem — and how? 

In the meantime, Mr. President, I sit here and read all the stuff about why the economy is tanking and I have to wonder how you and all of our other ELEC TED officials can even sleep at night. I mean, most folk’s consciences would be giving them the night sweats. Oh, well that grist for other mills.

 So, Mr. President, I am looking forward to your help (helping me) understand what’s happening. By the way, sir, I don’t drink beer which would preclude meeting you on the White Hose lawn;  so I guess you”ll have to either email me your response or post your answer in my blog…

With all due respect, Mr. President, I remain

Scared witless. Not for me but for my kids, grandkids and great-grandkids … they’ll be paying off this deficit for the rest of their lives. You know trying to fill one swimming pool (one drop at a time) would take a really long time — but thirteen?

Now, Mr. President, I will point a finger because this is debt that you (In the sense that you’re the main man at this point) have created with no rational thought of where it will lead us…

On second thought maybe it’s not a good idea for you to try to explain all of this to me beccause I firmly believe that you can’t spend your way out of debt. Admittedly, that’s a concept I learned in school some 60-odd years ago, so maybe taking three away from two doesn’t give you a minus anymore.

Jake Jakubuwski (Pronounced: “JAKE-uh-bus-Key)

Jake’s Jabber:

Okay, I guess this will make the launch of the new PURE JAKE website official.

As you can see, if you’ve  been following along over the years, the entire site has been revamped. Hopefully, it will be easier then ever to navigate. I guess the term is “user friendly.” I even had Kelly post a new, and updated, picture of me. Sorry, but you can’t have all the fun!

The biggest change is that PURE JAKE now has a blog! The blog is going to be where I can tell you about new things happening, new eBooks and videos and rant a little about politicians and the sad state of the economy. Boy! That part will be easy.

Speaking of new eBooks. I have two that are not locksmith related. “10 Secrets Your Attorney and Insurance Company May Not Want You to Know About Your Worker’s Compensation Claim.”

If you know anyone who has been injured on the job, they should read this eBook.

The second eBook is “How To Sell Successfully At The Flea Market This Weekend”. This is a really great eBook for the person that’s looking for ways to make money in a tough economy. I won’t bore you with descriptions of those eBooks here as you can click on the titles and go directly to each web page and read about them there.

The other big news is that with the revamping of PURE JAKE eBooks & Videos I will not only be talking about locks and locksmithing — I will be ranging far afield to give you articles on anything that strikes my fancy and that I think might tickle yours. In addition, I’ll be giving you a lot of hints, tips and ideas that can help you make money.

Please note that readers will be able to comment on my articles — whether they agree with me, or not! However, I do reserve the right to read, censor, delete or block any material that I feel would be offensive or constitute a personal attack against anyone. In other words, you can accuse me of being full of horse feathers and disagree with my politics, policies and prose. But you can’t castigate anyone (including me) by being mean-spirited and obnoxious.

So, enjoy the new PURE JAKE and keep in mind that you might not agree with everything that I have to say but it will be PURE JAKE to the core!

Jake Jakubuwski