AgentR11 wrote:
Counterpoint: Higher food and oil prices favor recreational activities which do not involve travel, aka internet surfing. cable/dsl is also cheaper than the full blown subscription TV packages.
Higher oil prices affect not only food but even other necessities, such as health care, which in turn not only affects travel but also cheaper forms of recreation. Other factors such as a credit crunch and unemployment do not help. This is probably why we've also been seeing major declines in exports (esp. for electronics) in Asia for the past eight months, generally global world trade volume dropping, and demand destruction for certain commodities in OECD countries.
And when the situation is prolonged....