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Economic Stimulus Package Equals Lower Gas Prices

December 4th, 2008 at 02:06 pm

I believe that the greatest economic stimulus package that could have ever been implemented is LOWER GAS PRICES.

Seriously. I believe that super-high gas prices forced people to trim their spending to essentials and to restructure their spending - including eliminating gas hogs. Now that gas prices have eased there is extra money each month.

I do not know about you, but I saw a ton of people at Wal-Mart on Black Friday shopping with cash.

The average American family is getting an extra $50 to $200/month simply because of lower gas prices. That equates to an extra $600 to $2,400/year.

What do you think?

4 Responses to “Economic Stimulus Package Equals Lower Gas Prices”

  1. creditcardfree Says:

    I agree Joe!! It is sure nice to have a reprieve from such high fuel prices.

  2. Ms. Pearl Says:

    Yes I agree! I just hope people don't go back to their gas guzzlers and I hope they keep demanding fuel efficient vehicles.

  3. Thrifty Ray Says:

    I am still scratching my head why the prices went so high...and how easily and quickly the prices came down when things got dire...odd.

  4. Broken Arrow Says:

    Well, oil prices are already quite low at this point, ringing in at a record $44 per barrel yesterday.

    I say "low" in the sense that OPEC isn't going to let this go on for very long. They recognize that cutting supplies now to ratchet prices up would not only cause discontent, but effectively suffocate an already weak western economy.

    You may not like your customers, but it's not good for business to hurt them to the point where they can no longer buy from you.

    Still, this isn't a price level they are actually happy with. There's a lot of in-fighting to raise the prices soon, and it's only a matter of time before that does happen.

    As for why it got so high, it was partly because Americans at the time still haven't changed their driving habits and enjoying gas guzzlers as well as the growing demand abroad, such as China. At the same time, OPEC for a while did not increase their oil supply as they have now (Bush's trip to Saudi Arabia did not help). All the while, we were still operating with stepped up operation in Iraq by the way of the Surge. Also, our strategic oil reserve has dwindled to almost nothing, and Bush decided that he would rebuild that stockpile at all cost, and last but certainly not the least was the massive oil speculating driving prices sky high, causing a large bubble that has since burst at this point.

    The one silver lining coming out of this is that I hope we Americans will finally seek a way to permanently reduce our dependence on foreign oil. The idea has been kicked around for literally decades, but so long as there was cheap oil and big oil lobbying at Washington, little was ever done about it.

    But now that US automakers are struggling to survive, hopefully, we're going to get some real changes for the better.

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