The US economy is totally dependent on transportation. Americans need it, inter alia, to get to and from work, to go to malls, to bus or drive children to and from school, to bring food into the house, pleasure driving, boating. As the price of gasoline rises Americans will conserve their money by reducing or eliminating some gas consuming activities as well as some activities that are optional to their way of life. I have already observed some less traffic at local malls and restaurants.
But at $3.00/gal for gasoline the impact on economic activity still seems moderate although it is possible that the impact could worsen if the price remains high or increases substantially. The $.75 increase over the past few weeks was dramatic and is causing economic pain. Another $.75 increase during the course of the summer driving season could have a very serious negative impact on an American economy which is 70%-80% dependent on consumer spending.
This week Joe and I are preparing our boat for the sailing season. Soon I will have a chance observe if there is an imact on the marina and the local businesses that are dependent on water activities.
No comments:
Post a Comment