New topic for discussion - Welfare........ - Posted by George(OH)

Posted by Eric (IL) on June 09, 2000 at 15:15:31:

I wouldn’t buyout all the dead businesses, but I agree the truckers should pass on the cost. In Illinois (we have the highest gas prices in the country now) it’s expected that the cost of all our goods and services will rise due to the rise in costs for shipping.

New topic for discussion - Welfare… - Posted by George(OH)

Posted by George(OH) on June 08, 2000 at 16:51:51:

…is supposed to ending in October of this year. At least in my state (OH). I don’t know if this is a federal change or not. Anyway, I was wondering what you folks thought about this change and how would it affect REI?

I thought about this when I heard a commercial for jobs training. There are so many people who have not worked in years, and now they are going to be thrust into the job market. I know this will have a bearing on the economy in general, but what about real estate? Good? Bad? No difference?

God Bless,


No bearing, No difference… - Posted by Anthony - OH

Posted by Anthony - OH on June 08, 2000 at 18:13:58:

Mmmmmm. Macroeconomics my favorite. The US, and Ohio has one of the lowest unemployment rates of all time. Most theorize that those rates cannot be reduced much further (there is just a point where you can’t keep anymore people employed.) I don’t think changing welfare will change the unemployment rate. Although it may replace non-skilled workers with newly-skilled workers via education programs. Unemployment rate stays the same. An influx of skilled workers into the market may loosen salaries a bit, but I doubt it.

I think the Macroeconomic cycles are effected less by welfare reform and more by government, foreign markets, and how the current macroeconomy is perceived by the public.

Real Estate - Hmmmm. If non-skilled welfare/renters become skilled worker/owners then that could affect the RE in your area.

Any other ideas?

and let us NOT forget about the high price of gasoline… - Posted by Kathie E.

Posted by Kathie E. on June 08, 2000 at 23:23:38:

…now THERE is a real economy CRUSHER! We had hoped to sell our trucking business when the REI dream was finally a reality. With the cost of diesel fuel and driver’s wages, we’re lucky to show a profit. If fuel prices continue to rise, and we all know they will before it’s over, we’ll be replacing the cab grills with stone slabs engraved with “R.I.P.”

All the oil on American soil and we have to let the Arabs dictate a price to us. hmmmm…

I apologize for straying from the beaten path on here…
Just had to vent…thanks. :slight_smile:

Kathie E.

Mmmm…Gasoline…I never understood this… - Posted by Anthony - OH

Posted by Anthony - OH on June 09, 2000 at 10:28:55:

My wife drives an '86 Freightliner BTW. Loves it. I get to stay home and try to get this RE off the ground!

I keep hearing all these owner operators complaining about the price of Deisel Fuel. Now usually when the cost of a paticular good goes up across a whole industry, the industry passes that cost along and makes MORE money!!! (at least until demand slows)

All these owner operators should be passing the fuel prices on to their customers. I have seen a number of larger trucking firms on TV saying that say they do just that and that they are making more per load than they ever have.

Example I used to work for a company who built and sold PC’s. Whenever the cost of memory fluctuated, which it could double in a day, or triple in a week, we adjusted our prices accordingly. Profit was always a percentage over cost. So if memory prices caused a PC to go from $1000 to $2000 then our profit went from $200 to $400!!

Yes higher prices slow down the demand for your good or service (hauling oranges), but by passing on the cost of goods(Deisel) you should be at least making the same money. (Law of Supply and Demand)

Now what I have a feeling is happening is that you have a lot of Billy Bob Owner Operators who never went to business school. They know that they always have gotten paid $400/day for pulling their oranges across the state. Instead of passing the gas cost on to their customers, they eat it. Causing the smart Owner Operators(whom I’m sure your part of) to have to compete with companies who are (after the cost of deisel) working for free!

The solution is not lower gas prices (although I wouldn’t mind). Everybody pays (comparitively) the same price for gas. Its not like the Chinese can ship the goods cheaper. :wink: The solution is to buyout all those owner-operators who are working for free. They are all going to be filing bankruptcy soon. Thier customers still need those goods hauled and may be shocked to find out that thier friendly trucker was working for free (because of bad business skills NOT Fuel Prices). So when you call them and say you’ve bought the business (for pennies on the dollar), they will be happy to pay your Fuel-Adjusted rate. They surely don’t want to have to ship all those oranges via FED-EX. (Because FED-EX surely adjusts their rates based on costs.)

Happy Trucking