The lower bound of the top 20% isn't really all that high. We're talking household income in the $90,000 and up range. The top 5% might not think twice about $4 gas, but that's not true for the rest of the top 20.
Gas Prices
- Thread starter cawacko
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The lower bound of the top 20% isn't really all that high. We're talking household income in the $90,000 and up range. The top 5% might not think twice about $4 gas, but that's not true for the rest of the top 20.
I will drive less to protest it. Why do gas prices shoot up when oil goes up, but never goes down as fast when oil goes down! It is a rip off, again of the people, and I am tired of it. It always amazes me and everyone just falls in line and doesn't do anything about it, because they feel like they can't.
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The Almighty
Correct, only 17.8% of all U.S. households make more than $100,000; 10% of all U.S. households make more than $118,200 a year. Only 2.67% make more than $200,000.
With the exception of that top 3%... everyone else is feeling the effects of higher energy, food and clothing prices. $4 gas hits each and every one in terms of disposable income.
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The Almighty
Driving less... to a small degree, but the fact remains that every extra dollar I spend on gas is a dollar I do not have to spend on other goods and services. It is a simple concept toppy.
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The Almighty
LMAO.... tell us toppy... how much of the money we spend on oil stays in the US?
What happens to the industries outside of consumer staples/health care/energy if that is where the majority spend the bulk of their income?
You make no sense. You may be right that people making $90,000 will not drastically cut driving, but what that means is that they will be spending more money on gas and will have less money to spend on other things. If they were able to cut back on driving substantially it would mitigate the destructive effects of high gas prices since they would be able to spend the money saved on gas on other things.
G
Guns Guns Guns
Guest
Oil prices jumped above $110 a barrel, a fresh 2-1/2 year high, after Japan was hit with another major earthquake. The gains came after a 7.1-magnitude earthquake occurred around 10:30 a.m. ET, near the same location off the coast of Japan as the March 11 earthquake.
Japan's news agency NHK issued a tsunami warning for roughly the same area that had been deluged by water less than a month ago.
http://money.cnn.com/2011/04/07/markets/oil/?section=money_latest
Japan's news agency NHK issued a tsunami warning for roughly the same area that had been deluged by water less than a month ago.
http://money.cnn.com/2011/04/07/markets/oil/?section=money_latest
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The Almighty
2008 toppy... 3 years ago... the economy went down in a direct inverse relationship to the rise in oil prices. When we hit $4 oil was about $148/brl and all the oil experts were predicting $200 oil. That didn't happen. What DID happen was demand destruction WORLDWIDE.
Those making 90k may not cut back on driving, but the rest of the world DID cut back on transportation use. In addition, those making that 90k were putting more money into the gas tank and thus had LESS money to spend elsewhere. What part of that very very simple economic reality do you not understand? You mock the left for their ignorance on economics and then when the subject hits close to home, you ignore economics and simply blurt out the same stupid comment over and over again. You have NOTHING to back up your assertion that $4 gas won't hurt us. I on the other hand have the most recent example of what happened in 2008 when gas hit $4.... the economy worldwide slowed down drastically.
Yes, the financial crisis added on to the downturn, but the downturn started long before the financial crisis exploded.
It is basic economics toppy... you dumbass GEDer
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The Almighty
We are watching.... and we are already seeing signs of demand destruction. The longer oil stays above fair value, the more destruction we will see in demand.
G
Guns Guns Guns
Guest
In recent weeks, there has been a growing sense that this latest oil price spike may not be as temporary or "speculative" as once thought.
Rising demand from China-which the country's biggest producer, PetroChina, now says will grow 14 percent by 2015-is considered among the most significant factors driving the bullish longterm outlook.
A senior Department of Energy confirmed this view in an interview with Platts Energy this week, indicating an opinion on the part of the administration that this time, higher oil prices are here to stay. "What's different is that if you look at the growth of other economies, like China and India...I think the demand for oil is going to go up, and that [oil] prices in the future will likely on average go up".
http://www.reuters.com/article/2011/04/07/idUS424964730520110407
Rising demand from China-which the country's biggest producer, PetroChina, now says will grow 14 percent by 2015-is considered among the most significant factors driving the bullish longterm outlook.
A senior Department of Energy confirmed this view in an interview with Platts Energy this week, indicating an opinion on the part of the administration that this time, higher oil prices are here to stay. "What's different is that if you look at the growth of other economies, like China and India...I think the demand for oil is going to go up, and that [oil] prices in the future will likely on average go up".
http://www.reuters.com/article/2011/04/07/idUS424964730520110407
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The Almighty
You truly are an economic GEDer.... here is what we saw in 2008 and what we will see again if prices stay this high...
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aqppvjnKiILc
http://www.usatoday.com/money/industries/energy/2008-06-10-oil-prices_N.htm
http://www.calculatedriskblog.com/2008/07/oil-demand-destruction.html
http://en.aviagen.com/assets/Broiler_Economics/2008AugBEDemandDestruction.pdf