AMERCIAblog.com discusses this morning how the rising of gasoline prices obviously affect the middle and lower income families, and that the levels of satisfaction by the public with the national condition of the economy has not been as low since 1992. The author points out that Americans are still going to buy gas even if the prices continue to rise, for they are not nearly high enough for that to change. Yet, what is happening is that consumers are buying less of most other goods. There has been the first decline of significant personal spending since 1991.
Not only are high gas prices making driving more and more inconvenient, but it is significantly hurting other areas of the economy! I never realized the long lasting effects that it had. Yes, people are more likely to stay nearby on a Friday night or something because they don’t want to drive far, but they are also resisting that tempting sale at AE or what not because they know they have a tank to fill. For as much as many hates Bush and what he has done to our economy, it will be interesting to see the effect that the new president will have. It almost seems at times, as sad as it is, that consumerism is America’s identity. Hopefully we can recover ourselves! J
4 comments:
I do agree with you to a certain degree, that the increase of gas prices would be detrimental to the economy. However, in other aspects, such as the environment, would be helped by the increasing of gas prices.
Interesting post. I guess i never really realized the impact made on higher gas prices all around...i just kept thinking about how bad it was impacting myself.
Another adverse effect of high gas prices is that it also forces up prices of most goods because it is more expensive to transport the products.
There is no denying that the economy would be a priority for the next president. With the country on the edge of a recession, it is imperative that the president deal with this issue as soon as possible.
As for the gas prices, I do believe that it will spark a push for new technology. Already we see more commercials on TV advertising cars with higher mileage or hybrid cars that do not require as many fill ups. Although I still remember how my parents complained when the gas prices went over a dollar, and I wish that I can fill up my car for less than 10 dollars, I believe that the higher prices now will push the American community in a way that will benefit us in the long run.
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