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GasBuddy News Article

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Falling gas prices not enough to lift economy

Mercury News -- WASHINGTON -- Cheaper gas has yet to cause consumers to spend enough on other goods to boost the slumping economy.

Americans barely increased their spending at retail businesses this spring, leading economists to predict slower economic growth in the April-June quarter.

But the news from a spate of government data Thursday wasn't all bad. Consumers spent more in May on cars, appliances and furniture -- big purchases that help drive growth. Businesses continued to restock this spring at a healthy pace.

And wholesale prices outside of gasoline costs remain stable, which means consumers can expect inflation to stay mild.

If gas prices stay low, Americans are likely to spend more freely this summer on other goods, from autos and furniture to electronics and vacations, that fuel economic


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Submitted Jun 14, 2012 By: angel4me
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Author Topic: Falling gas prices not enough to lift economy Back to Topics
REPLIES (newest first) Post a Reply
honda0105
Champion Author Tallahassee

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Message Posted: Jun 17, 2012 12:06:33 AM

jwalk: well, jobs rely on transportation of goods or people (service consumers). Either needs to be moved SOMEHOW. They haven't learned to teleport just yet. And transportation is usually achieved by burning some form on energy.
honda0105
Champion Author Tallahassee

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Message Posted: Jun 17, 2012 12:05:25 AM

gas is slowly creeping downward toward the 2.99 mark, diesel is not. Still too high and that's what keeps the economy in the dumps.
1006
Champion Author Birmingham

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Message Posted: Jun 16, 2012 7:25:09 AM

doubt it will happen
BoerneWatch
Champion Author San Antonio

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Message Posted: Jun 15, 2012 9:29:59 AM

We went from under a buck to $4 and somehow paying $3.50 is going to return us to economic prosperity?
jwalkerh
Champion Author Louisiana

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Message Posted: Jun 15, 2012 7:18:51 AM

Only jobs will do that...
FNB1967
Champion Author Ontario

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Message Posted: Jun 15, 2012 6:59:00 AM

Yesterday's news
OHMS
Champion Author Orange County

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Message Posted: Jun 15, 2012 5:34:58 AM

I'll go with tomok's answer.
golftellowcat
Champion Author Ottawa

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Message Posted: Jun 15, 2012 5:29:00 AM

ok
tomok
Champion Author Portland

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Message Posted: Jun 15, 2012 5:24:26 AM

The price of fuel at the pump has Not dropped enough to affect the economy. The price of fuel at the pump needs to drop around $2/gallon, then the economy will respond.
STOP Big oil from selling fuel and natural gas on the world market for higher prices or there will be NO price reduction for the cost of fuel or natural gas IN the US. 'Coming out of the closet' Barry will support natural gas and oil production for sale on the world market to pay for his ‘spending gone wild’ addiction and receive the huge federal tax income on oil. The US ‘oil and natural gas resources’ belong to the citizens of this country and are to be used by those same citizens! Speculators, manipulators and the banks continue to unfairly and unjustly make the driving public pay higher prices at the pump for their benefit.
Whatever the size or shape of the vehicle, Produce and ‘Drive’ vehicles with high MPG, are very safe and reliable, have a ‘reasonable’ cost and a good ‘value’ for the money. Consider using other forms of less expensive transportation to lower your cost, if possible.
The price of fuel at the pump is too high!
12/22/2012!
computernut2008
Champion Author Ohio

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Message Posted: Jun 15, 2012 3:58:12 AM

not down here
Zonk
Champion Author Michigan

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Message Posted: Jun 15, 2012 12:12:55 AM

Prices not falling in the mid-west.
agr964
All-Star Author Fresno

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Joined:Aug 2008
Message Posted: Jun 15, 2012 12:10:28 AM

If everything went up like gas did the last few years we'd be paying $70,000 for an economy car, $30 for a 12 pack of beer, and $15 fast food value meals. This is unsustainable as can be seen with world economies in the toilet since 2008 when the first big run-up happened.

Of the top 4 companies that raked in the most dough last year, 3 of them were gas companies. So basically, everyone else gets to give them any money they have left over during this downturn except them since they just charge whatever the heck they want and in turn make more money than ANY other company out there. The top three gas company took in a combined $1 TRILLION last year. Sure they perform a valuable service...but SERIOUSLY, how greedy can you get?

And as soon as any positive thing happens regarding the economy, you guessed it -- Up go the prices again to leach even more.



[Edited by: agr964 at 6/15/2012 12:13:08 AM EST]
DandyDapple
All-Star Author North Dakota

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Message Posted: Jun 15, 2012 12:04:26 AM

snore ...
LQQKGAS
Champion Author Phoenix

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Message Posted: Jun 15, 2012 12:03:14 AM


Falling prices is not the correct terminology,

Trickle down prices is!
honkerman
Champion Author San Jose

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Message Posted: Jun 15, 2012 12:02:31 AM

If such and such, then maybe such and such.... duh.
CdnLynx
Champion Author Ontario

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Message Posted: Jun 15, 2012 12:00:54 AM

Consumers are constantly under attack and are probably suffering PTSD. ;-)
waynemustang
Champion Author Indiana

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Message Posted: Jun 15, 2012 12:00:06 AM

ok
SparkieMi
Champion Author Kalamazoo

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Message Posted: Jun 14, 2012 11:58:26 PM

Pump prices still way too high!!!!!
big_mac64
Champion Author Tennessee

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Message Posted: Jun 14, 2012 11:56:50 PM

food prices are still way up, as is electricity and local taxes (property mainly).
bonzoonfmb
Champion Author Florida

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Message Posted: Jun 14, 2012 11:54:49 PM

Gas prices are still too high.
mcmonsta
Champion Author Honolulu

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Message Posted: Jun 14, 2012 11:51:57 PM

it takes a while to feel the savings or try to get back to hopefully more normal price of gas
mstearno
Champion Author Dayton

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Message Posted: Jun 14, 2012 11:48:54 PM

too little too late
regasaz
Champion Author Phoenix

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Message Posted: Jun 14, 2012 11:48:43 PM

Duhhh! Look at the unemployment figures and you will see why retail sales are not climbing.
btex49
Champion Author Austin

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Message Posted: Jun 14, 2012 11:46:01 PM

The American consumer is at his limit.
rashida
Rookie Author Ontario

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Message Posted: Jun 14, 2012 11:45:45 PM

that's true!
Dodge_Me
Champion Author Atlanta

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Message Posted: Jun 14, 2012 11:44:12 PM

When we are not wasting our money on high gas prices, how can we afford anything else
Dodge_Me
Champion Author Atlanta

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Message Posted: Jun 14, 2012 11:42:49 PM

Bull, gas prices go down, economy gets better!
DancinPrince
Rookie Author Illinois

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Message Posted: Jun 14, 2012 11:39:23 PM

Well the title tells it all…… Enough for me
dchiou
Champion Author San Jose

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Message Posted: Jun 14, 2012 11:35:19 PM

it's not just lower gas prices...
69Bonne
Champion Author Gary

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Message Posted: Jun 14, 2012 11:33:50 PM

I agree.
nztyraider
Champion Author Nevada

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Message Posted: Jun 14, 2012 11:33:45 PM

It takes a real president.
Alfied
Champion Author Riverside

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Message Posted: Jun 14, 2012 11:32:54 PM

Up and down, up and down, makes the world go around.
Blue48
Champion Author Illinois

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Message Posted: Jun 14, 2012 11:30:43 PM

BUMMER!
TONIATX
Rookie Author Houston

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Message Posted: Jun 14, 2012 11:24:23 PM

So true.
rickone
Champion Author Detroit

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Message Posted: Jun 14, 2012 11:23:50 PM

Interesting - Thanks for posting.
drz614
Champion Author Harrisburg

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Message Posted: Jun 14, 2012 11:23:10 PM

ok
J4romeo
All-Star Author Gary

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Message Posted: Jun 14, 2012 11:22:50 PM

lmao lower gas prices, shit with speedway running the show in my area, price still above 3.79 here!!..sad!!
veemotors
Champion Author Alberta

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Message Posted: Jun 14, 2012 11:22:03 PM

because it takes years to catch up on bills to spend on more crap.
skyking19
Champion Author Little Rock

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Message Posted: Jun 14, 2012 11:17:35 PM

There's more issues out there than the price of oil!
Marson
Champion Author Scranton

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Message Posted: Jun 14, 2012 11:16:24 PM

Prices just started dorpping, it will take a while for people to start spending the savings!
texashoudini
Champion Author Austin

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Message Posted: Jun 14, 2012 11:15:18 PM

No, but if it keeps dropping.......
kingspade28
Rookie Author California

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Message Posted: Jun 14, 2012 11:13:36 PM

u no if we the people wud start spending more and saving less and the prices of gas went under three dollars....i think we wud be fine
tippybuddy
Champion Author Ontario

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Message Posted: Jun 14, 2012 11:12:58 PM

they need to drop more yet
ChuckGVT
Champion Author Vermont

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Message Posted: Jun 14, 2012 11:12:36 PM

nobama's economy will be his downfall.
suzmar
Champion Author Texas

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Message Posted: Jun 14, 2012 11:09:06 PM

Gas prices may be falling, but they are still to high. Much higher than when Mr. Obama took office.
Thomtec
Champion Author Nashville

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Message Posted: Jun 14, 2012 11:08:52 PM

Economic activity creates jobs not falling gas prices. People working and spending creates the bigger pie,ie the bigger economy. Govt. does not nor never has created jobs.
OGW
Champion Author London

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Message Posted: Jun 14, 2012 11:08:35 PM

Well if they drop the barrel down to $30.00 the economy will pick right up!
Spankster85
Champion Author Chicago

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Message Posted: Jun 14, 2012 11:08:24 PM

What? You mean a drop of five and ten cents a gallon doesn't lift the economy?? (Sarcasm)
saleboss
Champion Author Phoenix

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Message Posted: Jun 14, 2012 11:08:23 PM

Less than a 30 cent drop here, and nothing seems to be getting any better with the economy!
danreino
Champion Author Twin Cities

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Message Posted: Jun 14, 2012 11:03:17 PM

Today the temperature dropped from 95 to 91....what a drop !!!! LOL
NemoIL
Champion Author Illinois

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Message Posted: Jun 14, 2012 11:02:36 PM

It helps hold down expenses and give consumers more disposable income. Sounds like this story is flawed.
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