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To: mikey_hates_everything

The rescinding of the executive order was a good start, but that’s not the whole story.

When housing prices were stratospheric, I kept telling my friends and family that our economy couldn’t support people earning $70-100k a year owning $500k homes. (Hello California!)

The same thing is true with gas prices. There are a lot of people earning <$10/hr out there. If you figure a $400/wk paycheck - which is closer to $300/wk after withholdings - how much can people really afford to pay for gas? Some people need to fill up twice a week to get to work (or more - luckily I don’t). Assume they are putting 12 gallons of gas in at a time. At $4/gallon, that’s $48 a fill-up. x2 makes it $96... almost a third of their paycheck. What does that leave for living expenses? $800-1000 a month? Good luck!

The simple fact is that high gas prices cannot be maintained. It was fun while it lasted, but I expect price per barrel to drop to the $80 range over the next couple of months. Even then, we’ll be stretched.

Without consumers who can afford your product, there is less demand.


16 posted on 07/29/2008 9:20:44 AM PDT by bolobaby
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To: bolobaby
“At $4/gallon, that’s $48 a fill-up. x2 makes it $96... almost a third of their paycheck. What does that leave for living expenses? $800-1000 a month? Good luck!”

Then put them in a northern state and add outrageous heating fuel costs 6 mo of the year!

37 posted on 07/29/2008 9:45:27 AM PDT by Beagle8U (FreeRepublic -- One stop shopping ....... Its the Conservative Super WalMart for news .)
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