Russia’s invasion of Ukraine led to a wild day on Wall Street. Concerns are growing that food and energy prices will rise even more.
Dr. Jerry Parrish is an economist with Florida State University, he has a background in international trade law and European Union law.
He said the impact of the invasion may have a long-lasting impact on the fundamental supplies Americans rely on.
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“It absolutely is concerning, and it should be for everybody,” Parrish said. “If you eat or use electricity, or you burn gasoline, you’re going to be affected here.”
He said the United States relies on Russia and Ukraine for international trade and goods - including oil, wheat and more.
“I suspect electricity prices are going to increase because of natural gas increases as well. Certainly, fertilizer prices are going to increase,” Parrish said.
Parrish said that increase could continue to extend to the gas pumps.
“The longer this thing lasts, we may already see $5 (a gallon as) they see in California,” Parrish said.
Parrish also made notes on how this could impact savings and 401ks.
“It’s going to be a tough day for your 401ks.” He went on to say, “Your grandma’s savings account, probably the amount of money she’s going to get paid on that probably wasn’t very much and it’s probably not going any higher anytime soon.”
It is also important to watch for the impact on tourism in Central Florida, Orlando is a major travel hub for Europeans.
“There could be some Europeans that may have wanted to come to Florida this year, they may not be able to now. They’re afraid to leave or they’re not willing to spend money with all of this uncertainty going on out there,” Parrish said.
Visit Orlando, which tracks tourism in the area, said it is too soon to predict any potential impact on Orlando’s tourism industry.
At a press conference Thursday, President Joe Biden told a reporter that the economic toll on Americans will be short-lived.
“As long as we continue to stay resolved,” Biden said.