Prices did not rise like that at the begining of the year.
Posted on 03/06/2015 7:02:17 AM PST by thackney
The plunge in gasoline prices has generated a windfall for American drivers. But so far, there's little evidence those savings are producing a widely anticipated boost in consumer spending.
So where is all that money going?...
Even though prices didn't fall until late last year, Americans saved some $14 billion on gasoline last year, or an average $115 per driver, according to estimates from AAA. The group figures if pump prices stay tame, those savings could amount to as much as $75 billion this year.
That kind of saving—if consumers spend it elsewhere—could provide a powerful boost to the U.S. economy, much like a tax cut. But, so far, that spending boost isn't showing up in the data.
The latest read from the Commerce Department showed that retail sales in January barely budged after dropping in December. Those figures are echoed in separate government data on overall spending. While outlays on energy-related goods and services plunged in December and January, total personal spending on goods and services also weakened....
Even if gasoline prices stabilize at lower levels, and consumers begin spending the difference, the impact may be less than initial forecasts suggest.
For starters, while a typical consumer might save between $500 and $800 this year, those savings don't come in a lump sum right away, notes Wells Fargo senior economist Mark Vitner.
"On a weekly basis, the savings work out to between $10 and $15, which is meaningful for lower- and middle-income households, but not enough to finance a spending spree, particularly right off the bat," he said....
(Excerpt) Read more at cnbc.com ...
Most of us figured it would be temporary and it appears we are right. $2.699 per gallon now, 40 cents more than a mere three weeks ago.
We decided to by beef for a huge middle class treat with the savings.
The money desparately being saved is going for FOOD, morons, and for the double or tripled GD insurance premiums jacked up on the public by the GD government “law” requiring we pay for useless non-working literal jackasses and illegal aliens.
What in the hell is with this crew-— buy f’n STOCKS. For companies who employ NO-One. What a hustle.
The California Democrat super majority of the state passed last year a new $1.29 (or so) tax on a gallon of gas. When I saw the barrel stayed down and the price came up I thought this was only a California thing and Democrats just using the timing to add some of the new tax to the gallon.
So this was a nationwide rape of wallets instead?
The oil cartel has been storing oil in order to jack up the price since demand is down around the world. They are to the point where they don’t have any place else to store it. Prices will fall shortly thereafter.
The price of gas can, and will, change over night. All it takes is one “event” somewhere in the world.
Many who benefitted from lower gas prices will be paying much higher heating bills this winter due to the severe winter we are experiencing in many parts of the country.
I’ve had thoughts along similar lines.
If I buy a more expensive cut of steak to grill at home, instead of chicken/pork again, does that boost the economy? Or does it just move business to cattle rancher from a chicken farmer with little/no overall economic growth?
As our storage level approach full, this is going to drive the prices down, not up.
Exactly. Cal sucks. We are going to have 6 to7 dollar a gallon gas soon when a barrel of oil goes back to 100 bucks.
Yep, to your point buying stocks right now is risky business. Valuations are quite high across the board and the down side risk is significant. There will be better buying opportunities down the road.
Prices did not rise like that at the begining of the year.
I am paying down debt. I’ve switched from consumer to survivor. I do not expect to ever switch back. I’ve lost confidence in our currency and our Federal Govt.
For some reason, it always goes up faster than it goes down.
http://www.philly.com/philly/news/Pa_gas_tax_to_rise_Jan_1_again_in_2015_and_17_.html
FU Tom Corbett.
It was fleeting.
Though if you'd asked me a year ago if I'd be complaining about sub-$2.30 a gallon gas prices after years of prices above $3.00 then I would have laughed at you. I'm just fickle, I guess.
They act as if folks weren't already in debt and going deeper before the gas prices took a dive - must be Leftists who think every penny earned/saved should be immediately spent on crap one doesn't need.
We can't catch a break.
Obama and the Democrats made sure the prices were on a decline for the 2014 elections. Obama has notified the oil producing countries to raise their prices per barrel.
Do you honestly believe they control gasoline/oil prices? And that was why it continued to fall for months after the election.
Obama has notified the oil producing countries to raise their prices per barrel.
Or if oil producing countries had that simple control, that the price would EVER go down?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.