Peak Oil Task Force Report - City of Bloomington - State of Indiana

From Global Problems to Homegrown Solutions
The Bloomington economy is clearly woven into the fabric of both the national and global
economies. The food we eat, the clothes we wear, and the tools we use to fix our homes
and tend our gardens are almost exclusively imported from distant states, sometimes even
distant countries. Getting these basic goods to our community exacts a heavy
transportation cost. While a protracted examination of the local Bloomington/Monroe
County economy is beyond the scope of this Report, as the price of oil continues to become
more volatile, we can anticipate the emergence of certain local economic threats. On the
other hand, our community’s position as a college‐driven metro area will likely buffer some
of the economic effects of peak oil. Traditionally, Monroe County has had one of the lowest
unemployment rates in Indiana. In part, this is due to the presence of Indiana University.
Higher Production and Distribution Costs
Most local businesses rely on shipping in products for retail sale or raw materials for
product manufacturing. As the cost of fuel becomes more expensive, these businesses will
be hard hit. Bloomington businesses that buy or sell in national and global markets will
have to contend with higher shipping costs. They may have to adopt new business
strategies or may have to lay off employees to compensate for higher costs.
Less Discretionary Income
If households have to spend more on energy, they will have less to spend on discretionary
goods and services. Businesses such as restaurants and entertainment venues which rely
on the discretionary spending of local residents or out‐of‐town visitors will be squeezed.
Report of the Bloomington Peak Oil Task Force
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