Comment by ericmay
25 days ago
Well, there are quite a number of factors. I think you're right that "it's inflation" is a little too simple, but it does seem to be at least a significant factor, in my opinion.
The Strait of Hormuz is, basically not a big deal unless you're driving your big ole' truck. Americans are price sensitive and so some companies will have to absorb pricing increases, customers will absorb some others, and so forth. In other words, business as usual. Of course the closure of the Strait is a big problem for most of the rest of the world. They better get on with figuring out how to get Iran to stop being so chaotic in the region or we'll just keep it shut down indefinitely. No big deal.
Because the United States has so many advantages (primary global reserve currency, robust and efficient capital markets, highly sophisticated and dynamic economy across all sectors except luxury goods, &c.) it's able to weather these storms much easier than most other countries. As a country that also imports so much, if we spend less on imported products that's less of a problem than not being able to sell products. A recession isn't great, but the current parameters seem to suggest to me it's less of a problem for the United States - perhaps why we're in part seeing stock market valuations continue to climb.
>The Strait of Hormuz is, basically not a big deal unless you're driving your big ole' truck
Are you serious? Even ignoring the other things that ship through there, a significant disruption to global energy supply is significant to most people. If you're not driving a truck, you're probably using goods that contain plastic or took energy to produce or were moved from one place to another in fuel-powered vehicles. If, somehow, you're not, you're probably using services that are.
Not to mention the countries heavily reliant on LNG from Qatar that are facing a very difficult time.
The best course of action now is to spend less time criticizing the United States and more time working with the United States, sending assets, military capabilities (if able), or at least providing political and diplomatic support &c. to stop the Iranians.
The world let this disease (IRGC) fester in the region for too long, and now because of that the fix is going to require significant pain. The IRGC in its current form has run its course and will not be allowed to threaten American interests, allied interests (whether that's Israel, UAE, Saudi Arabia, or otherwise), and they will not be permitted to build a nuclear weapon or threaten global trade.
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Yes I'm rather serious. For the US it's not a big deal (again unless you're driving one of those giant trucks where you're spending $300 to fill up, not my problem). Are $5 gas prices great? Not really, but is it a catastrophe? No, far from it. We have dealt with high gas prices before and we'll see high gas prices again. We just learn to live with it and find other ways to get efficient or whatever we need to do.
Some Americans need to have their understanding of the world checked. If you think high gas prices are the end of the world, just wait until we have a real problem. Are we going to be incapable of fighting a war because Netflix and Pepsi prices went up or it's too expensive to coal roll down the highway?
Separately as someone who supports both Ukraine and the US and taking down the Iranians it's amusing to see each political tribe get mad about gas prices as it is convenient for them. When Russia invaded Ukraine, MAGA was screaming from the rooftops and putting Joe Biden "I did that" stickers on gas pumps. Now that we're taking on the Iranians all of the commies are doing the same thing (aren't gas prices good anyway since we need to do something about global warming?). Neither side of populist is worthy of serious consideration. Stay the course, whether that's supporting high gas prices because of Russia or because of Iran.
The US does not exist in a vacuum. Cuba just ran out of fuel. These things have cascading effects. Even if you do believe the U.S. exists in a vacuum and you don’t drive a big truck, there are still obvious effects. Spirit airlines went bankrupt, for one. Will this be a global catastrophe? I hope not, but it could be if we’re unlucky.
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You're right, ever since we developed trucks, trains, and ships that run on pure atmospheric air, we haven't had to worry about pesky price fluctuations on every physical object that we buy or sell!
> For the US it's not a big deal
Do you like being able to buy food?
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> The Strait of Hormuz is, basically not a big deal unless you're driving your big ole' truck.
Worst take I’ve ever seen on this website.
> Americans are price sensitive and so some companies will have to absorb pricing increases, customers will absorb some others, and so forth. In other words, business as usual.
No. Not all goods/services have the same price elasticity. At some point, people stop buying some goods if they are too expensive. They stop commuting to work. We start to see breakdown of the supply chain.
Literally 100% of many towns in the US depend on trucks to deliver food to their grocery stores and the inventory on hand usually only lasts a few days. Once those trucking deliveries become unaffordable for either party in the contract, society starts to. Real down.
Consumers don’t magically make more money when the price of gas rises. It starts to crowd out their ability to spend on other things. The poorest of the working class likely has to commute the furthest so they will end up sacrificing something to keep paying for the commute - food or rent or utilities.
The US doesn’t weather this because we have “a sophisticated supply chain”. _If_ we weather it, it’s because we created the US SPR after the last major oil crisis and we have significant domestic supply (although not all oil is fungible so we might not have enough light sweet to keep the economy running at 100%).
We are handling it just fine. Your perspective of struggle is very wealth-oriented. We aren’t struggling at all as a country.
The second problem with your argument is that you’re using it as an argument against the war but it’s actually an argument in favor of the war. Why is that? Because as Iran continues to load up on missiles and pursue a nuclear weapon they reach a point where they can assert control over the Strait and shut down shipping pending tribute to their theocracy (maybe if it was a Christian one you’d have a bigger problem with it? Idk?) and then we couldn’t do anything about it. The world isn’t static. Stop treating it as such.
Equally bad take in your response.
Iran never attempted to develop a nuclear weapon. Literally 30 years of Netanyahu threatening it is just “weeks away” and Trump was the only US president to get suckered into that argument.
They have always used the threat of developing it as power, both domestically and regionally. It was 100% the exact same thing with Sadaam Hussein and WMD — they want to appear to have the strong weapon, but simultaneously don’t want to develop it or use it (until, ironically, Trump / Israel took out their leadership). Also, we were assured their entire nuclear program was “obliterated” summer 2025, so which is it? It can’t simultaneously be non-existent and an urgent national security threat to the US.
Now that Trump started the war in Iran, we are playing chicken with people who don’t care if they die or not (or so we are told). Not exactly a good position to be in against the “world’s largest sponsor of state terror”. We kicked a hornet’s nest and our political leadership didn’t stop to ask the experts (military, political, or economic) what were the completely predictable second and third order problems with this strategy. We couldn’t even get Trump to wait long enough to fill up the US SPR before starting a massive war in the Middle East.
To reiterate, we haven’t felt any of the actual pain YET. My arguments thus far are only of current harm, not the likely harm in the near future. That’s for next month’s comments.