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Reply #175: ok. if the virtual collapse of the great depression were overlaid on the current structure [View All]

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Lerkfish Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jun-14-09 06:25 AM
Response to Reply #173
175. ok. if the virtual collapse of the great depression were overlaid on the current structure
That could mean that the cities would face massive unemployment, and reduce the number of people who can actually buy food that is distributed. The costs of distribution would remain the same or increase, so the suppliers would sell to those in their immediate surroundings.

The cost of transport (which would include oil, but also maintaining fleets of trucks, trains, what ever) would cease to be cost effective.

I guess what I'm trying to get across is that currently we have large populations concentrated in big cities. Their demand for products is aggregated in one place in a high enough frequency that justifies the added expense to a singular location. It costs money to ship things long distances. Those costs cut into the bottom line. But the current system can handle that because the demand is high due to large numbers of employed people in large cities.

If you collapse demand, by massive unemployment, who is going to buy those expensively transported goods? Not enough to justify a consistent shipping pattern. And suppliers now RELY on being able to be centralized and distribute.

Its a more complex problem than just the cost of oil.

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