How Will Gas Prices Effect The Economy

[.X.]

With gasoline prices breaking the $3 mark in US,How will this effect economy? Consider all aspects.All your food and products you buy are a shipped into the market place via vehicle or airplane.These companies can only obsorbe these losses for so long before all your grocery products,Virtualy everthing will go up in price to accomadate these high fuel prices.A loaf of bread $4?? It's coming imo.I know alot people here would like to say GWB is the cause of this.NOT TRUE! It is the petrolium industry that raises gas prices,Not the government.The huge rise in fuel prices actually have the power to completly take our economy down imo.People that i have seen on TV reaction to this fuel hike are simply saying." I have to drive..so i will pay the high prices,But i have yet to hear one person acknowledge the enormous effects this will have on the economy.What do think??

 

[Keynes]

The same thing happened a couple of decades ago and the gas eventually went down. I think it was the 70's. People are just dealing with it.

There is a major difference between our current situation are the "oil crisis" of the 1970s, and the major factor at play here is demand. In the 70s, we had a short run supply and distribtuion problem exacerbated by a political crises of sorts. The issue today is that the gap between supply and demand is narrowing -- the growing rate of demand is increasingly outstripping that of supply (including reserves), and soon this gap will disappear.

With increasing demand for oil and gas products in Asia, we now have 2 prongs pulling the oil market into higher prices. Let's be clear: there is no short term "quick fix" to this problem -- it's structrual and will take both innnovation and intratemporal subtiution to alleviate. There are both market and political forces working to correct this inefficiency and we will eventually start making progress, but this is one of those painful "hiccups" in the process of moving toward a move efficient, integrated global trading economy.

 

[swimjenni]

They economy can not help but be effected. Nothing is moved without gasoline so if we want product moved from A to B it's going to cost more.

Even carpet cleaners need gas for their cleaners. Carpets were cleaned last week and they were 1/2+hour late because they had to get gas.

 

[movingconcierge]

The only good that will come of this crisis...I HOPE...is it is forcing the hand of innovation of alternative fuel sources...whatever they may end up being.

I'm hoping for Hydrogen because it seems to be the one of the most abundant fuels and it appears to have no ill effects at this time...oh and I own a TON of h2 names...hehehe...what...

 

[Lyte]

The only good that will come of this crisis...I HOPE...is it is forcing the hand of innovation of alternative fuel sources..

Amen! :tu:

 

[.X.]

I remember when the petros had diesel fuel at such a low cost,That people were buying diesel powered vehicles,Then...OUTTO!! After all the sales were made and people had spent thier hard earned money on clacky loud diesel engine in thier new vehicle,Desiel prices went back UP.My thinking is....The pertolium companies have the upper hand and can make or break an enconomy.But if they think iam gonna give up my truck for hydrogen powered mini me car..NO WAY!! They have made a statememt to the effect that ozone is gone behond recovery,Pollution levels can't be stabilized unless all the factories,Plants and ect just shut down,We can't have that either,We need our living supplies and ect.So what my option??? A hybrid vehicle,I may be up for that,But the lead in the batteries are sure to do you harm being they put them right in the vehicle with you imo.Not to mention batteries can explode,Getting off topic,will hit the punch line here.Petros,Stop raising gas prices just because you can and ruin our economy in the process.That's the best asnwer i can come up with at this time.If the ozone is already gone behond recovery,Well,,The factories and plants have to run and release pollution or we wont have our necessities,Hybrid vehicles are not only still a project in the works,The pose a danger to the driver from battery acid toxins imo,Possible battery explosion,So all i can see is that petrolium companies need to cut thier crap and we continue on with our lives in the envirnment we and 100 years of generations back have lived in.

 

[Sabre]

IMO it is more is not a permanant problem, eventually the economy WILL return to the pre-hurricane state, although, it may take a while....

 

[Zeeble]

I remember when the petros had diesel fuel at such a low cost,That people were buying diesel powered vehicles,Then...OUTTO!! After all the sales were made and people had spent thier hard earned money on clacky loud diesel engine in thier new vehicle,Desiel prices went back UP.My thinking is....The pertolium companies have the upper hand and can make or break an enconomy.But if they think iam gonna give up my truck for hydrogen powered mini me car..NO WAY!! They have made a statememt to the effect that ozone is gone behond recovery,Pollution levels can't be stabilized unless all the factories,Plants and ect just shut down,We can't have that either,We need our living supplies and ect.So what my option??? A hybrid vehicle,I may be up for that,But the lead in the batteries are sure to do you harm being they put them right in the vehicle with you imo.Not to mention batteries can explode,Getting off topic,will hit the punch line here.Petros,Stop raising gas prices just because you can and ruin our economy in the process.That's the best asnwer i can come up with at this time.If the ozone is already gone behond recovery,Well,,The factories and plants have to run and release pollution or we wont have our necessities,Hybrid vehicles are not only still a project in the works,The pose a danger to the driver from battery acid toxins imo,Possible battery explosion,So all i can see is that petrolium companies need to cut thier crap and we continue on with our lives in the envirnment we and 100 years of generations back have lived in.

Right..... So who gives a s*** about the future? America's population is just 5% of the world population but produces more than 30% of the worlds polution. There is no need for that, there are many ways of reducing polution whilst still managing to continue our high standard of living.

IMO, hyrdogen is the way to go. I heard that Merc. recently made a Hyrdogen prototype which had the exact same power and speed as other models, it could hit 140MPH, so there really will be no need to have a huge petrol gulping truck.

 

[Grrilla]

Your breaking $3 per gallon, and we are breaking £1 per LITRE! Thats almost $9 per Gallon!.

Almost 30 years ago, I spent a year touring Europe and, (I'm not sure, but as I recall) prices were almost the equivalent of $3, (or there abouts), for a US gallon of gas w/ the exchange rate, etc. It's only been a matter of time for gas prices to begin equalizing, globally.

I am still shaking my head and wondering why the trend towards the smaller, fuel efficient car that was in vogue during and after the energy crisis that took place during the Carter administration, (30 yrs ago- the first time Americans saw gas hit $1/gallon- although only temporarily), never stuck. The SUV's went from the original Bronco, small, maneuverable, gas efficient-> Big Blazer-like Bronco-> more sensible early Explorer-> Expedition. The "Road Warriors" in their spit polished Hummers, Land/Range Rovers, Mercedes and Cadillac SUVs, that never see a dirt road are the ultimate show of arrogance and unconscious, (and w/o conscience), thinking. They make me laugh, but I'm sure most of them are also laughing back because, in most instances, they can afford their fat SUV gas hog as well as the gas to fuel it, because they've already taken their large handful out of the cookie jar that is supposed to be feeding everyone. Too bad if you were late getting in or didn't have a daddy who gave you your first handful. Only cookie crumbs left? Well, that's how the cookie crumbles. Let them eat cake.