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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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honda0105 Champion Author Tallahassee Posts:18,610 Points:1,608,545 Joined:Nov 2008	Message Posted: Jun 17, 2012 12:06:33 AM Ignore honda0105 Report Abuse 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 Posts:18,610 Points:1,608,545 Joined:Nov 2008	Message Posted: Jun 17, 2012 12:05:25 AM Ignore honda0105 Report Abuse 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 Posts:1,105 Points:1,354,315 Joined:Apr 2008	Message Posted: Jun 16, 2012 7:25:09 AM Ignore 1006 Report Abuse doubt it will happen
BoerneWatch Champion Author San Antonio Posts:15,536 Points:2,452,965 Joined:Oct 2005	Message Posted: Jun 15, 2012 9:29:59 AM Ignore BoerneWatch Report Abuse 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 Posts:6,127 Points:1,368,720 Joined:Oct 2008	Message Posted: Jun 15, 2012 7:18:51 AM Ignore jwalkerh Report Abuse Only jobs will do that...
FNB1967 Champion Author Ontario Posts:1,827 Points:765,145 Joined:Jan 2011	Message Posted: Jun 15, 2012 6:59:00 AM Ignore FNB1967 Report Abuse Yesterday's news
OHMS Champion Author Orange County Posts:13,712 Points:1,690,905 Joined:May 2005	Message Posted: Jun 15, 2012 5:34:58 AM Ignore OHMS Report Abuse I'll go with tomok's answer.
golftellowcat Champion Author Ottawa Posts:2,442 Points:691,900 Joined:Apr 2010	Message Posted: Jun 15, 2012 5:29:00 AM Ignore golftellowcat Report Abuse ok
tomok Champion Author Portland Posts:32,990 Points:2,344,535 Joined:Aug 2006	Message Posted: Jun 15, 2012 5:24:26 AM Ignore tomok Report Abuse 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 Posts:6,573 Points:1,350,365 Joined:Oct 2008	Message Posted: Jun 15, 2012 3:58:12 AM Ignore computernut2008 Report Abuse not down here
Zonk Champion Author Michigan Posts:6,481 Points:2,102,015 Joined:Oct 2005	Message Posted: Jun 15, 2012 12:12:55 AM Ignore Zonk Report Abuse Prices not falling in the mid-west.
agr964 All-Star Author Fresno Posts:616 Points:70,945 Joined:Aug 2008	Message Posted: Jun 15, 2012 12:10:28 AM Ignore agr964 Report Abuse 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 Posts:715 Points:310,070 Joined:Sep 2008	Message Posted: Jun 15, 2012 12:04:26 AM Ignore DandyDapple Report Abuse snore ...
LQQKGAS Champion Author Phoenix Posts:2,666 Points:1,195,080 Joined:Oct 2009	Message Posted: Jun 15, 2012 12:03:14 AM Ignore LQQKGAS Report Abuse Falling prices is not the correct terminology, Trickle down prices is!
honkerman Champion Author San Jose Posts:44,237 Points:2,396,120 Joined:Jul 2004	Message Posted: Jun 15, 2012 12:02:31 AM Ignore honkerman Report Abuse If such and such, then maybe such and such.... duh.
CdnLynx Champion Author Ontario Posts:1,021 Points:523,150 Joined:May 2008	Message Posted: Jun 15, 2012 12:00:54 AM Ignore CdnLynx Report Abuse Consumers are constantly under attack and are probably suffering PTSD. ;-)
waynemustang Champion Author Indiana Posts:6,372 Points:1,664,810 Joined:Nov 2006	Message Posted: Jun 15, 2012 12:00:06 AM Ignore waynemustang Report Abuse ok
SparkieMi Champion Author Kalamazoo Posts:3,258 Points:588,325 Joined:Sep 2011	Message Posted: Jun 14, 2012 11:58:26 PM Ignore SparkieMi Report Abuse Pump prices still way too high!!!!!
big_mac64 Champion Author Tennessee Posts:10,593 Points:1,485,690 Joined:May 2005	Message Posted: Jun 14, 2012 11:56:50 PM Ignore big_mac64 Report Abuse food prices are still way up, as is electricity and local taxes (property mainly).
bonzoonfmb Champion Author Florida Posts:1,782 Points:643,835 Joined:Feb 2010	Message Posted: Jun 14, 2012 11:54:49 PM Ignore bonzoonfmb Report Abuse Gas prices are still too high.
mcmonsta Champion Author Honolulu Posts:3,227 Points:817,795 Joined:Sep 2009	Message Posted: Jun 14, 2012 11:51:57 PM Ignore mcmonsta Report Abuse it takes a while to feel the savings or try to get back to hopefully more normal price of gas
mstearno Champion Author Dayton Posts:8,066 Points:1,731,235 Joined:Jan 2008	Message Posted: Jun 14, 2012 11:48:54 PM Ignore mstearno Report Abuse too little too late
regasaz Champion Author Phoenix Posts:5,775 Points:1,280,880 Joined:Dec 2006	Message Posted: Jun 14, 2012 11:48:43 PM Ignore regasaz Report Abuse Duhhh! Look at the unemployment figures and you will see why retail sales are not climbing.
btex49 Champion Author Austin Posts:2,715 Points:530,105 Joined:Aug 2011	Message Posted: Jun 14, 2012 11:46:01 PM Ignore btex49 Report Abuse The American consumer is at his limit.
rashida Rookie Author Ontario Posts:77 Points:5,355 Joined:Jan 2011	Message Posted: Jun 14, 2012 11:45:45 PM Ignore rashida Report Abuse that's true!
Dodge_Me Champion Author Atlanta Posts:2,214 Points:555,480 Joined:Mar 2006	Message Posted: Jun 14, 2012 11:44:12 PM Ignore Dodge_Me Report Abuse When we are not wasting our money on high gas prices, how can we afford anything else
Dodge_Me Champion Author Atlanta Posts:2,214 Points:555,480 Joined:Mar 2006	Message Posted: Jun 14, 2012 11:42:49 PM Ignore Dodge_Me Report Abuse Bull, gas prices go down, economy gets better!
DancinPrince Rookie Author Illinois Posts:83 Points:42,260 Joined:Jul 2011	Message Posted: Jun 14, 2012 11:39:23 PM Ignore DancinPrince Report Abuse Well the title tells it all…… Enough for me
dchiou Champion Author San Jose Posts:2,821 Points:792,240 Joined:Feb 2007	Message Posted: Jun 14, 2012 11:35:19 PM Ignore dchiou Report Abuse it's not just lower gas prices...
69Bonne Champion Author Gary Posts:1,150 Points:473,150 Joined:Sep 2005	Message Posted: Jun 14, 2012 11:33:50 PM Ignore 69Bonne Report Abuse I agree.
nztyraider Champion Author Nevada Posts:2,273 Points:693,325 Joined:Apr 2009	Message Posted: Jun 14, 2012 11:33:45 PM Ignore nztyraider Report Abuse It takes a real president.
Alfied Champion Author Riverside Posts:7,935 Points:1,755,285 Joined:Jun 2001	Message Posted: Jun 14, 2012 11:32:54 PM Ignore Alfied Report Abuse Up and down, up and down, makes the world go around.
Blue48 Champion Author Illinois Posts:7,305 Points:1,637,945 Joined:Feb 2007	Message Posted: Jun 14, 2012 11:30:43 PM Ignore Blue48 Report Abuse BUMMER!
TONIATX Rookie Author Houston Posts:26 Points:599,420 Joined:Dec 2010	Message Posted: Jun 14, 2012 11:24:23 PM Ignore TONIATX Report Abuse So true.
rickone All-Star Author Detroit Posts:545 Points:392,685 Joined:May 2004	Message Posted: Jun 14, 2012 11:23:50 PM Ignore rickone Report Abuse Interesting - Thanks for posting.
drz614 Champion Author Harrisburg Posts:2,300 Points:597,690 Joined:Aug 2011	Message Posted: Jun 14, 2012 11:23:10 PM Ignore drz614 Report Abuse ok
J4romeo All-Star Author Gary Posts:506 Points:1,214,925 Joined:Jan 2006	Message Posted: Jun 14, 2012 11:22:50 PM Ignore J4romeo Report Abuse lmao lower gas prices, shit with speedway running the show in my area, price still above 3.79 here!!..sad!!
veemotors All-Star Author Alberta Posts:710 Points:66,320 Joined:Jun 2008	Message Posted: Jun 14, 2012 11:22:03 PM Ignore veemotors Report Abuse because it takes years to catch up on bills to spend on more crap.
skyking19 Champion Author Little Rock Posts:1,996 Points:1,698,715 Joined:Jan 2007	Message Posted: Jun 14, 2012 11:17:35 PM Ignore skyking19 Report Abuse There's more issues out there than the price of oil!
Marson Champion Author Scranton Posts:8,942 Points:2,077,185 Joined:Oct 2006	Message Posted: Jun 14, 2012 11:16:24 PM Ignore Marson Report Abuse Prices just started dorpping, it will take a while for people to start spending the savings!
texashoudini Champion Author Austin Posts:2,624 Points:1,095,855 Joined:Jun 2009	Message Posted: Jun 14, 2012 11:15:18 PM Ignore texashoudini Report Abuse No, but if it keeps dropping.......
kingspade28 Rookie Author California Posts:8 Points:505 Joined:Jun 2012	Message Posted: Jun 14, 2012 11:13:36 PM Ignore kingspade28 Report Abuse 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 Posts:1,523 Points:207,740 Joined:Feb 2011	Message Posted: Jun 14, 2012 11:12:58 PM Ignore tippybuddy Report Abuse they need to drop more yet
ChuckGVT Champion Author Vermont Posts:6,693 Points:1,692,225 Joined:Apr 2008	Message Posted: Jun 14, 2012 11:12:36 PM Ignore ChuckGVT Report Abuse nobama's economy will be his downfall.
suzmar Champion Author Texas Posts:2,212 Points:871,990 Joined:Jun 2006	Message Posted: Jun 14, 2012 11:09:06 PM Ignore suzmar Report Abuse Gas prices may be falling, but they are still to high. Much higher than when Mr. Obama took office.
Thomtec Champion Author Nashville Posts:2,459 Points:607,170 Joined:May 2011	Message Posted: Jun 14, 2012 11:08:52 PM Ignore Thomtec Report Abuse 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 Posts:5,324 Points:1,531,150 Joined:Sep 2005	Message Posted: Jun 14, 2012 11:08:35 PM Ignore OGW Report Abuse Well if they drop the barrel down to $30.00 the economy will pick right up!
Spankster85 Champion Author Chicago Posts:1,724 Points:356,090 Joined:Nov 2011	Message Posted: Jun 14, 2012 11:08:24 PM Ignore Spankster85 Report Abuse What? You mean a drop of five and ten cents a gallon doesn't lift the economy?? (Sarcasm)
saleboss Champion Author Phoenix Posts:3,929 Points:1,177,875 Joined:Feb 2006	Message Posted: Jun 14, 2012 11:08:23 PM Ignore saleboss Report Abuse Less than a 30 cent drop here, and nothing seems to be getting any better with the economy!
danreino Champion Author Twin Cities Posts:8,348 Points:1,539,755 Joined:Mar 2008	Message Posted: Jun 14, 2012 11:03:17 PM Ignore danreino Report Abuse Today the temperature dropped from 95 to 91....what a drop !!!! LOL