Gas Prices and the US?

Question

Won't rising gas prices corrupt our country? When everyone starts spending all their money on gas, and stops buying other things, won't the economy just give out?

Answer 1

First there is gas theft then food thefts . Next people will be stealing the lunches from kids standing at the bus stop . Gangs will be roaming neighborhoods  trying to smell some one cooking then raiding the home . A down ward spiral into lawlessness .

Answer 2

No, due to free trade. In a free trade system, every transaction leaves both the buyer and seller in a better position than they were immediately before the trade was executed. You  may say that gas prices are too high, but if you are buying gas, you are saying "I value this gas more than the money it costs me to buy it."

In other words, if you have an empty tank of gas and $40 in your pocket, if you fill up your tank you are saying I am better off with a full tank of gas and $0 in my pocket. If you don't feel that this is true, you will not fill up your tank, you will find an alternative. There are countless alternatives to driving, including walking, riding your bike or taking public transportation. You could also decide to buy a smaller car that uses less gas.

With every increase in price there are buyers who say, that's too much for that product, and will no longer purchase it and will find an alternative. This is called the marginal buyer and is the first person to drop out of the market for a good.

Answer 3

humm... goes both ways I feel like if we out source for cheaper gas there goes TX. So many people in this country rely on their oil in come from here if we out source more than we are now. people in our country will be forced to shut down their wells and it will also cause a drop in the economy. and we will be boosting others. Its seems to be a loose loose. the only solution is to wade through this mess in the process of going green!

Answer 4

No.  If gas prices are still affordable (by the standard definition that implies that people are still buying) that doesn't hurt the economy.  People will be spending the same amount of money, but a larger portion of that will be on gas.  Your point may very well be that gasoline is foreign and thus if we spend more on foreign goods, we spend less on domestic.  But, even though this is true, the domestic demand will simply decline.  Domestic prices should lower.  And REAL GDP should not fluctuate.  REAL GDP is based simply on the value of production.  But, in order to have that production happen, we need the consumption.  Overall, I don't think 1 thing (gas prices) is going to significantly alter what people buy.

Answer 5

yes, it is crippling.

I don't know if the economy will just give out, but it's not good.

Meanwhile, Bush and Cheney have money invested in Oil. Oil companies are making record profits. Some suggest Bush is doing what he can to get as rich as possibly before his term is finally over. I think it's criminal.