Gas Prices
- Thread starter cawacko
- Start date
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The Almighty
The above is just nonsense. $4 gas is based on oil being around $135-145/brl. That is well above fair value for oil based on supply and demand.
As I stated, we have already seen the direct result of $148/brl oil. It created a dramatic demand destruction that crippled our economy. 70% of our oil consumption is due to transportation. People cancelled vacations, minimized driving, anything and everything to lower the impact of oil at those prices. $4 is nowhere near sustainable. It wasn't before the financial sector imploded, it most certainly isn't in this weak ass economy.
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The Almighty
Do a 180, then you might be correct. If gasoline prices remain above $3.00 on average for the remainder of Obama's term he will not get re-elected. If it goes to $4, he will get slaughtered at the polls as the economy will be in shambles.
Mott the Hoople
Sweet Jane
It's $3.50/gal here in Cowtown....glad I ride my bike to work. I put $20 in the tank two weeks ago. I drove up to the grocercy store last night and the gas light just came on.It's 3.79- 3.89 here...glad I drive a Prius
I sure seem to remember liberal's whining uproariously and blaming Bush for high gas in 04... yet nothing against Obama~
Liberals did and they will for Obama. The magic # is $4.00/gallon. It goes above that and their will be political consequences regardless of who is in office.
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The Almighty
Wrong again. The middle class (and lower income) spend the bulk of their earnings on consumption. The wealthy do not. Rising prices in energy, food, clothing hit them far harder than the wealthy. It crushes the economy as demand for other goods and services as the bulk of their spending power goes to necessities and leaves little room for extras. So while consumer staples may do well, the rest of the market implodes.
Mott the Hoople
Sweet Jane
I don't know about that but they have done wonders on efficiency for vehicles. My sister works at the Ford engine plant in Lima and she was telling me about the ecoboost V-6 they'll be putting into the Mustang. over 260 ponies and about 32 mpg on the highway or something like that. The'll be putting that in the F-150 too. Don't know what the numbers on gas efficiency are but if Ford & GM can develop light trucks and SUV's that reach 25 - 30 mpg then I wouldn't be surprized to see sales climb back to 10 million units a year. Americans gotta have their big cars and trucks!
Mott the Hoople
Sweet Jane
True. I'm fortunate, they do for me. I live 5 miles from where I work. We have bike trails and sidewalks up the wazoo. Just about anything I need, shopping, entertainment, food, medical, etc is literally in walking distance. I only drove a hair over 3,000 miles last year.
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The Almighty
CAFE standards have NOTHING to do with what we are talking about. Regardless of HOW it gets there, if gas prices hit $4, we are going to see the same type of demand destruction we saw in early 2008. It is not sustainable. Saying it won't create negative growth is absurd given the fact that we just witnessed the results of $4 gas.
If oil goes back down to $90, then gas on average nation wide should return to the $2.70-2.80 range. That is sustainable... and closer to fair value.
Mott the Hoople
Sweet Jane
I agree with your observation. It's also why I oppose flat tax schemes, though don't get me wrong, you can go to far on the progessive side of life too.
So many things in America needs a revolutionary kind of overhaul right now - Social Security, military spending, foreign policy. But perhaps the biggest is energy policy; this is such a ticking time bomb, and I don't think it's fear-mongering to say that.
We should have targets for energy independence - set timeframes where we commit to be able to supply x% of our needs domestically, with the ultimate goal of 100%. Drilling, natural gas, alternatives - everything has to be on the table, and pursued aggressively. Everyone on both sides of the aisle wants something, so there is ample room for compromise here.
Obama has to show some leadership on this; the time for half-measures and talk is over. One day, gas is going to go over $4 and stay there...
We should have targets for energy independence - set timeframes where we commit to be able to supply x% of our needs domestically, with the ultimate goal of 100%. Drilling, natural gas, alternatives - everything has to be on the table, and pursued aggressively. Everyone on both sides of the aisle wants something, so there is ample room for compromise here.
Obama has to show some leadership on this; the time for half-measures and talk is over. One day, gas is going to go over $4 and stay there...
Oil is about $109 today and the cheap gas at WaWa is $3.70.....109 is a far cry from $148.....
Right now I have three vehicles that are paid for. An '04 Tahoe that gets 18 mpg, a '97 Dodge Truck that gets 12 mpg, and an '07 Yamaha motorcycle that gets 40 mpg. We are trying to pay down our mortgage so I can retire in 6 years when I am eligible. We don't want to buy a new vehicle right now. The part of our budget that is set aside for a vehicle payment being used to double down on the mortgage.
A Prius or something similar isn't an option anyway. Two families from church have bought these economy cars....within the past 5 years. The repairs needed due to driving conditions have been expensive for them, not nearly off-setting the money saved in fuel.
This is just me. We are doing quite well financially right now but most folks here and I assume in many other places are definitly not able to go out and buy a new or even good used more fuel efficient vehicle. The money they make is being used just to live. $4.00 a gallon for very long is going to hurt a lot of people.....and hurt them badly. $3.50 a gallon is tough enough on them, IMO.
A Prius or something similar isn't an option anyway. Two families from church have bought these economy cars....within the past 5 years. The repairs needed due to driving conditions have been expensive for them, not nearly off-setting the money saved in fuel.
This is just me. We are doing quite well financially right now but most folks here and I assume in many other places are definitly not able to go out and buy a new or even good used more fuel efficient vehicle. The money they make is being used just to live. $4.00 a gallon for very long is going to hurt a lot of people.....and hurt them badly. $3.50 a gallon is tough enough on them, IMO.
Mott the Hoople
Sweet Jane
That's just simply not true. The bulk of consumer spending comes for the lower half and the upper half depend upon the lower halfs consumption for their prosperity.
That was not the magic number against Bush ..it was at about what we now have. I see people here riding their motorcycles in the rain to save...crazy! I bought my Prius, used, a year ago- it was about 22.00 to fill my tank - one year later it costs 30.00 to fill. That is 8 dollars in one year-steep.
Topspin
Verified User
typical turbo-lib who's bad at math and economics. LOFL
According to new research from Moody’s Analytics, the top 5% of Americans by income account for 37% of all consumer outlays. Outlays include consumer spending, interest payments on installment debt and transfer payments.
By contrast, the bottom 80% by income account for 39.5% of all consumer outlays.
According to new research from Moody’s Analytics, the top 5% of Americans by income account for 37% of all consumer outlays. Outlays include consumer spending, interest payments on installment debt and transfer payments.
By contrast, the bottom 80% by income account for 39.5% of all consumer outlays.
Topspin
Verified User
typical turbo-lib who's bad at math and economics. LOFL
According to new research from Moody’s Analytics, the top 5% of Americans by income account for 37% of all consumer outlays. Outlays include consumer spending, interest payments on installment debt and transfer payments.
By contrast, the bottom 80% by income account for 39.5% of all consumer outlays.
According to new research from Moody’s Analytics, the top 5% of Americans by income account for 37% of all consumer outlays. Outlays include consumer spending, interest payments on installment debt and transfer payments.
By contrast, the bottom 80% by income account for 39.5% of all consumer outlays.