The coming crash: gas prices up, retail sales down, US economy implodes

Rising gasoline prices are not just a nuisance or a joke.
Graphs of George Bush’s popularity have tracked gasoline prices quite closely, and this is not a coincidence.  We are a commuting, suburban, mobile society. Everything we do, including shopping, uses gasoline. And it costs 60 or 70 bucks to fill up the tank of a larger car, SUV or pickup.

More ominously, according to bonddad,

As a rough rule, every penny increase in gas prices lowers consumer spending by $1.3 billion.

In most of the country, gas prices have gone up by around 13 cents since February.  Just driving to and from the store can easily cost $5.  So it’s no surprise that Walmart sales are dropping, and so are those of Target.

The US economy is driven by consumer spending, and by the housing industry.

Are we clear?

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Filed under economics, George W. Bush: is he really THAT bad?, Politics, travel

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