After more than six months of war in Iran, the good news for the US is that the American economy remains surprisingly stable. Most economists do not predict a recession, and unemployment remains low. However, the war has a price - its consequences are felt most by small businesses, writes ARD.
Ay Navarro, who has two food trucks in Sacramento, says: “Both of them need generators for cooling. And they are expensive, and I have to pass on some of the additional costs to customers”.
Diesel prices are at record highs
The problem stems mainly from high fuel prices. “The high prices are a consequence of the war in Iran and what is happening in the Strait of Hormuz”, explains Bob McNeilly, energy advisor to former President George W. Bush.
The fighting and the blockade of the strait have seriously affected supplies along this important route. The repercussions are also reaching the United States, the German public media reports. And it is not just about gasoline anymore. “The record-high diesel price is causing particular concern,” says commodities expert Alima Croft.
Higher costs for transportation and food
Rising diesel prices are making it more expensive to transport goods - they are increasing the costs of transportation, goods, food and travel. Consumers are already feeling the consequences of the war on a daily basis, writes ARD.
The conflict is also becoming increasingly expensive for the state, points out Gabe Murphy, a representative of the consumer protection organization “Taxpayers for Common Sense”. “Our comprehensive estimates show that the direct costs for taxpayers already exceeded $100 billion by the end of June, and have increased since then. Added to this are the costs for consumers.”
Burden on taxpayers
An analysis reveals that the war has so far cost American families around $1,000 per household. Americans are paying for the war on two fronts at the same time: through increased living costs and through the budget, notes the German public media.
Added to this is the fact that a large part of the costs are financed with loans. This will increase the state's interest payments in the coming years, and ultimately taxpayers will pay, while arms companies and parts of the energy industry register profits.
Concern about high inflation
And for this reason, most analysts do not expect a severe economic crisis. The greater concern is that inflation will remain high for a long time and the Central Bank will continue to keep interest rates high, ARD points out.
The concrete expression of these circumstances is often highlighted in personal choices. Like Sean Bennett, who is just filling up his rather old car. “I have had a car without a loan until now. But it will be difficult for me to get a new one, paying for it with installments, insurance and running costs." That's why he's not at all sure that he'll get a new car - that will also depend on the US war against Iran.
Author: Anne Schneider (ARD)