An economics question

[Steelyman]

I don't really understand too much about how the economy works but I've been mulling this over and I'd like to hear some more views.
The price of essentials such as gas, electricity and petrol are constantly rising. We are told to use our vehicles less for the sake of the environment and I guess many of us try to keep the amount of gas and electricity we use to a minimum.

Now, the power and fuel companies have to make profits to pay dividends to their shareholders so if we use less of their products then surely their profits will reduce. As there seems to be panic on the stock exchange if a company posts poor profits then surely they will put their prices up to sustain their profits. This means that even if we do cut back we will still end up paying more for the essentials.

I work for a food company and if our products aren't making enough profit we either have to sell more and do promotions such as buy-one-get-one-free or put the price up which results in a reduction in sales. As most food items are non-essentials the consumer has the option of not buying.

It seems to me we are stuck in an economy where you are damned if you do and damned if you don't

[colonel]

I could make a long answer to this- but I will keep it brief.

Becuase of the rise of India and China as economic powers, we now have a world where less resources are wanted by more people. That is why prices have gone up.

I am afraid that we have had decades of comparatively cheap food and cheap fuel; but that is over now- and the prices will ratchet up as the years go by, with every reduction due to competition being less than the previous long-term lower price. And so on.