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?