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| *Ostroff, Fair and Company>>>Other Taxes |
Negative effects of increasing power rates? |
Negative effects of increasing power rates? All power rates are relative to the overall cost of everything. When it cost more cash to ship the product the price of the product goes up. Also it makes people blame people other than the companies whose stocks triple. Last my house is now about 80F instead of 68F because its too expensive to blast my AC Having to dig deeper into your pockets. You have to pay more for electricity and the power you consume becomes more expensive. This answer is based on current trends. The current trend is almost a doubling of rates each year. Possibly more in areas without compitition in providers. 1. Damage to the economy. People have to have power. There is no way around it unless you live out in the woods. Even then without a fridge that means a trip to the store to buy anything which requires refridgeration. Unlike other industries, growth in power rates does not mean more jobs in that industry. In increase in demand would but the opposite would happen. Utility companies get richer but almost none of it trickles back into the economy. 2. The poor will increaasingly suffer hardships. Rates increases will mean more people will be unable to pay utiities so they will do without water, power or another esential service. Ironically many poor will pay the cable bill before essential utilities. Still it is the poor that will suffer the most. 3. Deaths will occur directly related to rate increases. The elderly on fixed incomes are the most vulnerable to both the dangers of heat and rate increases. Elderl in Southern states will lose the ability to have AC durince peak months and this will directly kill some. On the opposite side many poor families will also wind up spending weeks at a time without power. This will lead to an increase in food poisoning. This will be especially lethal to infants who's formula will go bad quickly in the heat but the parents unable to afford either the power bill or new forumula will risk using questionable forumla. Infants are also more succeptable to heat related deaths. Try Southern Florida or Texas when the temp gets up to 100 and anybody will feel like they are about to die. Many will. In Northern states some people rely on electricity for heating and at least a few will wind up freezing to death or of cold related illness's injuries. 3. Econmoically it is a disaster. As rates increase it will trigger inflation which could quickly get out of control. Rising rates will increase the costs of all goods. Some stores may wind up opting for low or no AC in the summer and low or no heat in the winter. The majority will see it as a cost of doing buisiness and pass the increases on to the consumer. It will dramatically increase manufacturering costs. Possibly being the last straw and forcing some of our few remaining factories to relocate. When combined with inflation this will have a synergistic effect as buying power goes down consumer demands will weaken thus causing more factories to relocate in an attempt to stay in business. When combined with inflation and reduced consumer demand the effects will again aggravate each other causing each to feel like they are even worse thant they are. 4. Reduced demand will happen. As the cost per kilowat goes up conservation will become more important. This will reduce loads on electric conpanies who will then have less incentive to explore alternitive energy sources. They will possibly even shut down existing plants and facilities. This will leave the nation more vulnerable to black outs and damage from disasters both natural and man made. Why invest in some expensive new technology when existing conventional plants are not even working at full capacity? |
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