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I know it is negligible to most, but I have decided to do a soft boycott with the increasing gasoline pump prices. I only buy a gallon at a time now. Maybe the meme will click in people's heads when they see the last sale on the pump standing at a gallon bought for $3.74 total cost. My fuel gauge was on empty, so I bought a gallon of gasoline tonight. I'll buy another one tomorrow. The next person that uses the pump after me might think it is a shame all someone could afford is a gallon of fuel. Maybe it will get them to think about how we use fuel like it is water.
you're hurting yourself. because as prices rise, you're causing yourself to pay a higher average price.
i just started using "gasbuddy" religiously, as I have it as an app on my smartphone. on my way to work this morning, I updated the price at every gas station on my route. i'll check again on the way home. after a few days of doing this, I'll know whether it's better to buy gas on my way to work or on my way home (divided state route), and where to buy it. i'm not going to drive out of my way to save 2 pennies per gallon, but i will ensure i'm patronizing the place with the best price.
also, there's a place that takes cash only that's significantly less per gallon. i get 5% cashback on gas, so I need to take a look at that and see if it's wortwhile.
if more americans took a more conscious look at this, we might be able to be smarter about it. i'm doing it because i'm now consistently exceeding my monthly budget (set on mint.com) for gas...and i want to see if i can get back below budget, without increasing it.
That isn't true at all. The Middle and Lower Middle Classes can afford those things, they just don't manage their finances properly.
The Middle and Lower Classes HAVE TO manage their finances properly, duh.
The current Middle and Lower Middle Classes are incapable of distinguishing between "needs" and "wants."
Most responsible members of the Middle and Lower Classes are ALMOST ALWAYS calculating needs vs. wants. Problem is, once you've cut back to the basic necessities (and I do mean basic--shelter, food, transport, healthcare, Kleenex), there's nothing you can cut back to. You are of a high income, so you would not understand these things and prefer to remain cynical about all those who haven't "made it" financially.
A cell-phone is something one "wants" not something one "needs." Other Middle Classes led satisfying and fulfilling lives without them, the present Middle Class can too, but they have to want to do that. As soon as they dump the $300/month cell-phones, they'll find they have extra money lying about.
A cell phone service costs LESS than a landline with LD calling.
Cell phones have been a godsend to those who cannot afford landlines.
Since we've all seen $4 gas before, I don't see this as being an issue for most Americans. Yes, there's less disposable income, but the real sticker shock is going to hit at $5 a gallon, because we've never seen gas prices that high. I picked $5 deliberately, because even if we've never seen gas at $4.80 a gallon, for example, our tiny brains only see the "4" and not the additional 80 cents. Seeing regular gas selling at $5.01 will have a bad psychological effect.
I have to laugh at the lines of cars at my local Cosco. These people are lining up for 15-20 minutes to save 10 cents per gallon at most! If you have a 20-gallon tank, that's a whopping savings of $2. I'd rather shave my budget somewhere else (oops, can't get that bagel once a week anymore!).
Since we've all seen $4 gas before, I don't see this as being an issue for most Americans. Yes, there's less disposable income, but the real sticker shock is going to hit at $5 a gallon, because we've never seen gas prices that high. I picked $5 deliberately, because even if we've never seen gas at $4.80 a gallon, for example, our tiny brains only see the "4" and not the additional 80 cents. Seeing regular gas selling at $5.01 will have a bad psychological effect.
I have to laugh at the lines of cars at my local Cosco. These people are lining up for 15-20 minutes to save 10 cents per gallon at most! If you have a 20-gallon tank, that's a whopping savings of $2. I'd rather shave my budget somewhere else (oops, can't get that bagel once a week anymore!).
Hey, it adds up. $2 a week, $8 a month, $96 a year. Would be worth the extra time for me.
Since we've all seen $4 gas before, I don't see this as being an issue for most Americans. Yes, there's less disposable income, but the real sticker shock is going to hit at $5 a gallon, because we've never seen gas prices that high. I picked $5 deliberately, because even if we've never seen gas at $4.80 a gallon, for example, our tiny brains only see the "4" and not the additional 80 cents. Seeing regular gas selling at $5.01 will have a bad psychological effect.
I have to laugh at the lines of cars at my local Cosco. These people are lining up for 15-20 minutes to save 10 cents per gallon at most! If you have a 20-gallon tank, that's a whopping savings of $2. I'd rather shave my budget somewhere else (oops, can't get that bagel once a week anymore!).
the pyschological effect is meaningless. $4.80/gallon means that every time a person fills up a 20 gallon gas tank they are spending $96. that's $96 that goes straight to other countries' economies. at $3/gallon, we're sending $60 per tank. at $4, $80 per tank. bottom line is...no matter what you make, a larger slice of our incomes is going overseas instead of into our economy.
people don't seem to realize this, but that has a real effect.
The other aggregate impact is that people all but cut out interstate travel. That 3 hour drive to the big city? Forget it. You don't think that has an aggregate effect on the economy? Think again. At $4/gal people certainly don't stop going to work and the grocery store, but you dang skippy they cut out long distance travel. That does add up. You can easily double your fuel budget for one month with one 400 mile round trip. Car rental doesn't save you jack. That adds up.
That trip to grandmas just threw the middle class bob two months behind his cc repayment schedule. Demand is inelastic, people will go see grandma before she dies, and honestly, about the only normative thing I'll say on the topic. People don't have the right to go see grandma first class for 99 bucks round trip, but they should be able to go see grandma, proverbially speaking. Sad country we live in where human interaction is considered a luxury. Go to work, go home. Go to work, so you can afford to cover the expense of getting to work. Then go home. Then be discarded. Then die. This country's social outlook is jacked up if that's the prescription.
middle class can't afford 4/gal gas year over year on today's dollar. It will show come the holidays. Muhammad goes to the mountain or the mountain comes to Muhammad, either way we'll pay the piper of high energy cost in a society that's BUILT on perma nomadism and long distance travel.
So driving by the local gas station I saw gas was $3.69/gallon. I have to admit this is a bit of a psychological barrier for me, and even more so as it creeps toward $4/gal.
At around that mark I am starting to "clench up", in terms of my spending. No, the extra $50/month extra over $3.00 or so isn't breaking the bank, however I think it's more reactionary. Also, in 2008 when oil prices went this high my own company was starting to really feel the effects as well as my industry (airlines). I am not in danger of losing my job today but possibly in the future as the airlines are slowly bled dry if they can't continue to increase ticket prices. Also, higher ticket costs means reduced demand, and a cut in aircraft which means less employees at said airline. Not a good combo for me.
So, with that being said I went on a pretty big buying binge over the last 4-6 months or so as the economy improved and my income increased significantly working more hours. That buying binge has officially come to a close and I have to wonder if this is going to be repeated through households over the entire US.
Will $4/gal gas make people tighten up to the point of strangling our economy? And should we be thinking about selling off our investments and going to all cash?
Hey Obama has the solution....go out and buy one of Government Motors electrical cars@ $33,500 bucks!
People still drive because its seen as a right and not a luxury.
People still drive because they are effectively forced to. In many areas, mass transit is not a viable alternative. I live a block away from my job and walk to work evey day,but I still won't get rid of my car (even though I'd love to!) because mass transit is lousy in my area.
the pyschological effect is meaningless. $4.80/gallon means that every time a person fills up a 20 gallon gas tank they are spending $96. that's $96 that goes straight to other countries' economies. at $3/gallon, we're sending $60 per tank. at $4, $80 per tank. bottom line is...no matter what you make, a larger slice of our incomes is going overseas instead of into our economy.
people don't seem to realize this, but that has a real effect.
You forget the Nearly $0.50 Per Gal in taxes, the few Penny's per Gal to the gas station, The Money to the transportation company, the $ to the Refinery etc....
I'm doing a little more of 'straight here to there' or planning out my driving, but now it's 2 wheel season again, 44MPG loaded down at 100MPH.
People still drive because they are effectively forced to.
If you would have read further back in the thread, you would've seen I'm one of those people. Plus on top of it I'm stuck driving full size vehicles (Pick-Up & SUV (more U than anything else)).
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