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$5 gallon gas & the economy...

How is this going to affect you. I dont have much choice but to drive. I live in the country. I have to drive to take the kids to the doctor, school, etc. My husband has to drive to get to work. Right now its $3.62 a gallon and trading at more then $107 a barrel. I have heard by the end of the month (April) if we dont get any sort of real oil added were facing $5 a gallon gas.
Do you think this is going to tank our economy? On top of that hyper inflation is coming in June. I personally think this is going to seriously damage an already bad economy.
Thoughts?

 
gemgem

Asked by gemgem at 2:32 PM on Apr. 1, 2011 in Money & Work

Level 42 (148,630 Credits)
This question is closed.
Answers (9)
  • I wanted to add this if I may GemGem.

    The sad reality is this.The steep gas prices and next economic downturn will predominately only affect hourly wage earning workers, middle income and working poor families the hardest. Based on the government's formula for judging the economy, the economy is making one heckuva a come back.Corporations are earning record profits, they are sitting on a ton (trillion plus at this point) of cash that they horded when they shored up (laid off, cut departments, cut benefits, cut bonuses, froze wages etc)The big dogs are doing just fine, hell they are doing better in some ways than they have in years. The average hourly worker however, their incomes have been stagnant for a decade plus now. It's getting harder and harder for them to make ends meet. They will be hit the hardest, struggling to buy gas to go to work, struggling to buy food (food prices will get higher and higher)
    pixie_trix

    Answer by pixie_trix at 2:54 PM on Apr. 1, 2011

  • Yes gemgem! I am very worried about what's to come. Gas over here is already 4.10 per gallon, and higher gas prices means higher EVERYTHING prices because it will cost companies more to get and move product. We are looking at a much more expensive cost of living, across the board.

    We now that inflation is coming. It will take companies a while to reset salaries to match the inflation, so we are all going to be REALLY squeezed for a year or two.

    My husband and I are brainstorming about ways to bring in extra income.

    Scary times.
    ImaginationMama

    Answer by ImaginationMama at 2:37 PM on Apr. 1, 2011

  •  In regards to me/my family. Gas prices really only affect me because of the rise in cost of goods and services due to those increases. I would have to deal with the cost of goods/services rising with or without the increase in gas prices really.So the overall affect of gas prices on my pocket book, isn't that great. IF I had to buy gas. I'm sure the impact would be very notice noticeable.We are very fortunate to live in an area in which we do not need to own a car (we haven't owned a vehicle of any sort in over 20 years.Do not ever see us owning another any time soon).


    In regards to the economy.. Steep gasses prices will have an overall negative affect on our struggling economy. Our economy is dependent on consumption. Consumption/consumer-retail sales makes up 70% of our economy. The more people have to spend on gas, the less disposable income they have, so consuming slows down even more. So does the economy..

    pixie_trix

    Answer by pixie_trix at 2:45 PM on Apr. 1, 2011

  • It is supposed to be "know" . . . not "now". Sorry about the typo.
    ImaginationMama

    Answer by ImaginationMama at 2:38 PM on Apr. 1, 2011

  • Us too. We normally make enough to live comfortably. I may have to go back to tutoring just to pay for groceries & gas at this rate,.
    gemgem

    Comment by gemgem (original poster) at 2:38 PM on Apr. 1, 2011

  • Oh I know all about the hourly wage earner problem. My husband was with the same company since graduating HS and making decent money and got laid off. They outsourced to China I think. Every job he got after ended in lay off and were smaller wages. Now he is working and finally full time not a temp (thank God) but he is making a good 1/4 less then what he was when I met him. Its terrible really. Were making less and having to spend more.
    gemgem

    Comment by gemgem (original poster) at 2:57 PM on Apr. 1, 2011

  • Gas here is $4.05 a gallon. We chose to stay in the city, where we can take public transit, walk, ride bikes, etc.
    rkoloms

    Answer by rkoloms at 5:50 PM on Apr. 1, 2011

  • we tried everything to get jobs in our town. the closes jobs avaliable are 30 min away and pay minimum wage. dont know how were onna do it, but im hopin for the best. for groceries i already use coupons. everything i believe is goin to get worst. if your in the midde things take a long time to get better. give up hope and you'll end up broke.
    minki111

    Answer by minki111 at 6:38 PM on Apr. 1, 2011

  • we tried everything to get jobs in our town. the closes jobs avaliable are 30 min away and pay minimum wage. dont know how were onna do it, but im hopin for the best. for groceries i already use coupons. everything i believe is goin to get worst. if your in the midde things take a long time to get better. give up hope and you'll end up broke.
    minki111

    Answer by minki111 at 6:38 PM on Apr. 1, 2011

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