IncogNeato:

Okay, as prices rise, her company pays more. Therefore they make less. Therefore, they have smaller bonuses and raises, and may even consider cutting back on benefits or even laying off.

It's already happening. I work in a decidedly macho industry in Texas, that most macho of states, where all of our salesmen are accustomed to driving full size, four door pickup trucks. Now, when we're a salesman is up for a new leased vehicle, he turns in his F-150 for a Taurus (not exactly a mileage champ, but way better than a pickup). Why? Gas prices. And I suspect that this will be happening with lots more companies as prices rise.