How many times do you fill up your tank of gas? Most American’s fill up their cars at least once a week. Between daily commutes, errands, and vacations we use our cars all the time. A Professor from the University of Southern California has investigated how the price of gas effects our spending habits. In the short run we could:
– eliminate driving vacations
-carpool or ride public transportation
-buy cars with better gas millage
But all of these options are either expensive or inconvenient. That is why we make cuts in other areas:
“In 2007, Wal-Mart estimated that the then current higher gasoline prices take away $7.00 per week from an average family budget. Since then, this figure has certainly increased significantly”.
It is clear that gas prices effect consumer spending. Instead of cutting back on gas consumption, we cut back on eating out, vacations, and entreatment, and shopping:
“Some economists estimate that for every one cent increase in the price of gas, spending in other areas will decline by one billion dollars”.
Our reliance on gas shows how we narrow minded we are. We are willing to hurt all the other industries just as long as we don’t have to give up driving. Other industries are feeling the effects too. Consumers are noticing higher prices in grocery stores because the goods have to be transported. Warehouse stores or discount retail stores are seeing more action. Consumers want to get all their shopping done at one place for the best price possible. Gas prices effect everything!