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.
Loading the full story…
