Saturday, March 24, 2012

Economists say Gas may drive us into another recession

As the rhetoric changes on all the economists about the gas prices and the likelihood we will end up back in a recession, I say, you guys are two years too late.  I have been saying it for quite some time, and have been posting about it here for nearly a month.  The thought is ridiculous that NOW the high prices are going to effect the economy.  Other economists are wondering why demand is down. 
Duh!
Americans can't afford to drive!
This is going to kill the economy because they can't get out and get a job to pay for the food on the table, let alone vacation. 
What you will see is more local economies actually surviving, not really thriving, but surviving because people will realize that $2 loaf of bread and the sorts winds up being cheaper than driving 20 miles to the local big chain store, or even five miles for some.  This means that those local grocers that have been struggling for years may actually benefit.  However, they must in turn pay more for fuel and ultimately raise their prices, so it will be a short lived honeymoon.  I also believe you will see more people growing at least a portion of their food, this will decrease a little of their overall grocery expense.  Hell, one tomato plant at 7 bucks and a lot of patience will ultimately yield at least thirty bucks of tomato if the person does even halfway good at it. 
Might effect the economy?  Might put us in a recession?  Please, we are already heading there again, the only thing keeping the fancy numbers going up is the prices of gas and new electronics.  Apple is still going strong.
All anyone has to really do is look at the bulk stores and see how much their sales increase or decrease, and you will get an idea of the recession likelihood.
The fact is, with gas going up, our spending power goes down, the economy will tank unless something changes, and there is nothing anyone can say about it otherwise.  If you decrease the amount gas costs you will promote tourism and increase jobs as the rich folk feel they can dive a little more into their pockets to hire some out-of-work guy or gal.
I would love to meet these economists so I can let them know how SLOW they are to come to terms.  I am all for the uppity keep it cheerful outlook, but reality should have set in with these folks a long time ago.

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