Will $5 gas ruin our economic recovery?

  1. Max Dalton profile image89
    Max Daltonposted 6 years ago

    Will $5 gas ruin our economic recovery?

    That's provided that you actually think we're in an economic recovery. I think $5 gas, at its core, increases the cost of consumer goods and decreases the disposable income that households have available, which results in decreases consumer spending. As a result of all this you'll see that the manufacturing cost of goods goes up, which cuts into a company's earnings, which means the cost of goods for the consumer goes up. As a result, company's sell fewer products and have lower earnings....... In short, a dependency on foreign oil will eat this country alive. Thoughts?

  2. Rock_nj profile image93
    Rock_njposted 6 years ago

    It's hard to say actually.  $5 gas might not have the feared impact.  When gas went from $1.25 per gallon to about $3.75 per gallon last decade (which greatly contributed to the economic crash in 2008), that was an approximately 200% increase in gas prices.  That was hard for the economy to accomodate, and we sufferred the consequences.

    If gas now goes from $3.80 per gallon to $5.00 per gallon that is only a 30% to 35% increase.  While it won't help the economy, we may be able to absorb that sort of increase without a new recession.  There are some indications that high gas prices are spurring people to trade in older cars for new cars that are more fuel efficient, which is positive for the economy.

    See my Hub $200 Oil:  Should We Be Alarmed? http://rocknj.hubpages.com/hub/200-Oil- … Be-Alarmed for an explantion why hitting $5 gas or $200 oil might not have the bad impact that everyone fears.

  3. ercramer36 profile image93
    ercramer36posted 6 years ago

    I think $5 gas will bring economic activity to a halt because there are so many people without jobs or underemployed.  Plus, the cost of everything will increase along with it.  Gas prices are not the only issue, oil is used in so many different areas that we don't think of.  Plastics, lubricants, makeup all have a variation of oil in them.  The difference from 2008 is that so many more people are out of work or underemployed.  People do not have excess disposable income to be able to overcome much of an increase.

    It is a shame that we haven't developed our resources in this country.  We have so much oil underground and offshore in this country for atleast 100 years.


This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

Show Details
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)