Economic forecasters predict the hurricane and resulting oil prices will drop GDP growth to 0% for the quarter.

Aren't people still spending the same amount of money just more on fuel and less in other areas? Or, will people simply not go to the store because they perceive it costs too much to drive there?

Brian Elfert

 

WoW. Complicated question.

I think it has alot to do with the fact that EVER SINGLE product, service and you name it is going to cost business and individuals MORE.

The FACT is that only refiners and sellers of oil or the realted equipment to extract, haul or refine it will be getting richer (as usual).

 

Putting more in the gas tank in stead of buying refigerators, TV's, etc.

 

Not long ago it cost me about the same to fill up a tank of fuel in my truck as a basic dinner for 2 at a decent restaurant. Now at $2.90/gal. its $87 to put 30 gallons in.

I used to fill the tank of my motorcycle with pocket change. 3 gallons might run around $3.50-$4.00. Now those 3 gaoons are close to $10.

To put in perspective for the average working person (at least around here with our wages) they have to drive 15 miles to get to work. They drive a 15 mpg car or small truck. (most of the locals can't afford a nice new economy car). Thats 2 gallons a day, something that used to cost $2.50 a day. Now they are looking at $6 a day, or $30 a week. Thats a lot for someone bringing home $250 a week after taxes.

Jim

 

But, people are spending the same amount of money, so why would economic growth stall?

Brian Elfert

 

Because the money spent on refined products isn't being spent in the manufactured goods and services sectors, and the oil and gas and related industries aren't adding enough employees to offset the loss. Therefore, if manufactured goods and services sector employees lose their jobs, the same amount of money isn't being spent!

Rusty

 

People are spending more on necessities and less on "extras". If they have to spend more money on gas, heating oil, etc., they won't be buying as many new cars, taking vacations, eating out, etc. Its not so much how much they are spending, its WHERE its being spent.

BUT, even the amount of spending is going down. Just from people I have talked with, many have cut way back on luxury items so they can put the money in the bank to use for heating oil this winter. A few months ago they were budgeting for $2 a gallon. Now they are looking at $2.75 a gallon, and are being told it will be going higher. What cost them $500 for a 250 gallon tank of oil last winter, may cost them $1000 or more by the end of the winter. We don;t know when this will end, and with a 50% increase in prices since last winter (and prices still rising) I think people have every reason to budget for $4/gallon fuel this winter. It might not go that high...but you never know.

Economic growth occurs when people spend more money on all aspects of their life, not on just one thing- fuel.

Jim

 

Not me. I find myself asking “do we really need to go out to dinner & a movie?” or "do I really need this new T.V. or Edge box for my truck?” When it cost twice as much to fill up my truck as it did this time last year, it puts a damper on most of my activities. I now consciously ask myself if I really need to take this short trip or not. We were going to go to the lake this weekend but decided against it since the price of fuel has jumped to almost $3.00 a gallon in the last day.

I am really starting to consider selling my beloved truck in favor of something with better fuel mileage. I hate too but that is probably what it is going to come down to.

Britt

 

Don't forget that everything in the store will become more expensive.

They don't have a farm and ranch behind the local grocery store....

It's all trucked in, and with a .20 - .50 cent price jump this week, you can bet the trucks aren't going to deliver for free...


Merrick

 

Wifey's getting 5 gallons of gasoline for Christmas.
If I buy it now and put it away, it oughta be worth a couple of hundred bucks by December.

 

And what are you going to buy? Considering the big "low emissions, high fuel mileage" time we live in, the numbers really look terrible. here are some real-world mileage figures, figured during normal driving, not on the treadmill like the EPA does. (Thats why the Honda Civic Hybrid thats rated at 47 MPG only gets 26 in the real world.) Anyway, check out this site:
http://autos.yahoo.com/consumerrepor..._category.html

My big, heavy, 4x4 diesel gets 22 mpg unless I'm towing. Here are vehicles that get worse mileage than me:
Nissan Maxima GXE* 21 mpg
Chrysler Sebring LX (V6) 21 mpg
Ford Taurus SEL 21 mpg
Volkswagen Passat GLX (V6) 21 mpg
Hyundai Sonata GLS (V6) 21 mpg
Subaru Legacy L Special Ed. 21 mpg
Nissan Altima 3.5 SE 20 mpg
Chevrolet Impala LS 20 mpg
Mazda 6 s V6 20 mpg
Oldsmobile Alero GL (V6) 20 mpg
Toyota Camry XLE (V6) 20 mpg
Hyundai XG350 L 19 mpg
Pontiac Grand Prix GT* 19 mpg
Dodge Intrepid ES 19 mpg

Toyota RAV4 22 mpg
Honda CR-V EX 21 mpg
Subaru Forester S 20 mpg
Saturn VUE (V6) 18 mpg
Mazda Tribute LX (V6) 18 mpg
Hyundai Santa Fe GLS (V6) 18 mpg
Ford Escape XLT (V6) 17 mpg
Suzuki XL-7 Touring 17 mpg
Land Rover Freelander SE 17 mpg
Jeep Liberty Sport (V6) 15 mpg
Nissan Xterra SE (V6) 15 mpg

Honda Pilot EX 19 mpg
Acura MDX 18 mpg
Lexus RX300* 18 mpg
Toyota Highlander Limited (V6) 18 mpg
Nissan Pathfinder LE 16 mpg
Ford Explorer XLT (V6) 16 mpg
Jeep Grand Cherokee Laredo (6-cyl.) 16 mpg
Buick Rendezvous CXL 16 mpg
BMW X5 4.4i 15 mpg
Mercedes-Benz ML500 15 mpg
GMC Envoy SLE (V6) 15 mpg
Toyota Sequoia Limited 15 mpg
Toyota Land Cruiser 14 mpg
Dodge Durango SLT Plus 13 mpg
Chevrolet Suburban 1500 LT 13 mpg
Chevrolet Tahoe LT 13 mpg
Ford Expedition Eddie Bauer 12 mpg
Ford Excursion XLT 10 mpg

So...unless you want to drive a Honda insight or a VW Golf TDI, you might as well stay with your diesel.

Jim

 

Probably a Toyota Tacoma Crew Cab but I don’t know yet. Still in the thinking phase.

Toyota Tacoma TRD (V6)

City 12

Hwy 22

150 Mile Trip 19


Well Jim… your one of the lucky ones then. My big heavy 4X4 only averages 15 MPG and that in this day and time is not good enough any more. This is hand figured and a lot of highway driving. When it cost me over $50 to fill up my truck from half a tank then something’s got to give.

Britt

 

Just remember to read the fine print.
YMMV



Your Mileage May Vary

I'll keep riding until it's too cold, then I'll take the truck.
I hope the 5 gallons a week I'm using now will offset the costs of filling the truck during the winter months. (Hoping for a short, warm winter)

 

Ouch!!! I kind of wish I had my father's...'97 4x2 std. cab 2500 5-speed. 26 mpg on secondary roads, but it does down to around 23 on the highway. Mine gets 22 almost every fillup, including a several hundred mile round trip on the highway.

I don't know if I would give up the size and comfort of a CDT Ram for the sake of 4mpg, but thats a decision you have to make...and live with. Good luck.

Jim

 

A few months ago I bought an regular Honda Civic. I'm getting 44.6 mpg. My 2000 is parked next to the barn.