5 Myths About $3 Gas [11.16.7]

[T Mac]

A couple of years ago, the prospect of gas costing $3 per gallon—indefinitely—loomed as an economic cherry bomb and a threat to the American way of life. Automakers considered $3 gas to be the threshold at which car owners would rebel and trade in their SUVs for scooters. And economists feared it would crimp consumer spending—the great engine spurring U.S. economic growth—as people traveled less, cut back on shopping, and generally stayed home and moped.

It hasn't happened.

Needless to say, rising pump prices are an economic hardship for some people, like low-income workers who drive long distances to their jobs. But gas prices that now average about $3.10 per gallon—more than twice what they were five years ago—seem to have had surprisingly little effect on the cars people buy and the way they drive. Here are five dramatic scenarios associated with $3 gas that various seers have predicted but now look like they aren't going to happen.

Click here (http://www.usnews.com/blogs/flowchart/2007/11/16/5-myths-about-3-gas.html) to read the entire column from US News & World Report

By Rick Newman

[Sandpebble]

The US ecomomy is choking from the high cost of fuel,not only at the pumps but groceries are going way up, and what about home heating cost this winter. The impact is so devistating that as soon as the gas cost go up consumer spending goes down on everything else. Dropping gas gusslers is not immediate as the owners ego's are to big to admit the thing has to go.They will however park them in hopes that fuel prices will come back down as history has shown. They will be disappointed this time because it is not going to happen. After the wife get's the food paid for and the house heated there will be no money left for that money sucking toy sitting outside. So no impact, WRONG. The lag time is soon to expire, as the kids want Christmas and food before they care to ride in daddies big toy. Bring on the new diesels that get 40-50 MPG then we can still drive and eat in a warm home.:D

[tsmithvt]

The US ecomomy is choking from the high cost of fuel,not only at the pumps but groceries are going way up, and what about home heating cost this winter. The impact is so devistating that as soon as the gas cost go up consumer spending goes down on everything else. Dropping gas gusslers is not immediate as the owners ego's are to big to admit the thing has to go.They will however park them in hopes that fuel prices will come back down as history has shown. They will be disappointed this time because it is not going to happen. After the wife get's the food paid for and the house heated there will be no money left for that money sucking toy sitting outside. So no impact, WRONG. The lag time is soon to expire, as the kids want Christmas and food before they care to ride in daddies big toy. Bring on the new diesels that get 40-50 MPG then we can still drive and eat in a warm home.:D

Well said "Sandpebble". In addition to your points, I believe that we are at the beginning of baby boomer retirements which means smaller, fixed incomes for a lot of us. The "toys" will need to be much more fuel efficient.:cool:

[2RedV's]

sandpebble - we agree on this one! :)

Meanwhile, US companies are not being allowed to drill for known oil reserves off the coast of Florida but the Chinese are drilling there instead...

(Please. No one can say that the oil rigs will hurt their beach view. These are 90-200 miles off-shore and certainly not visible from land)