A letter to the editor in the March 25 edition of the Examiner encouraged readers to “watch the success of our economy under President Trump after we successfully end the mullahs’ reign of terror in Iran.” Stepping aside from politics, I’d like to briefly discuss what a sustained spike to $200 per barrel for oil (approximately $6 a gallon at the pump) would do to the local economy.
First, Americans have already paid $10 billion more for gas in the month since the attack on Iran and the closure of the Strait of Hormuz. But $6 a gallon gas in Hardy County would hit the poultry industry hard at every step of the production process. The higher price of oil would significantly increase transport costs for the trucks we see daily and raise the price of many other expenses associated with poultry processing. Basic economics suggests companies would respond by charging higher prices or reducing costs via fewer shifts, temporary shutdowns, or layoffs. The impact of higher prices throughout the supply chain would almost certainly create job and income losses in Moorefield and surrounding communities.
For residents, the shock would show up immediately in higher gasoline and grocery bills, with food prices rising steeply to keep pace with spiking production and distribution costs. Households impacted by layoffs or reduced hours would see their income fall just as costs are surging, which would increase reliance on credit and assistance programs and likely result in increased levels of debt, utility cutoffs, and unpaid rent. As price-sensitive consumers, Hardy County residents would no doubt reduce or stop non-essential purchases. Property values and sales taxes would decline, shrinking the town’s tax base and forcing cuts to needed personnel, services, and infrastructure maintenance. Businesses of all sizes would face lower sales and higher operating costs, leading to more layoffs, closures and a feedback loop that would leave a trail of business failures and many residents of Hardy County in dire straits.
This is a different reign of terror I’m certain most Hardy County residents would like to avoid.
Miguel Ferguson
Moorefield
