How Gloomy is Your Economy?

Well...though my husband and I are feeling the trickle down effect of the high gas prices in food and such, I guess we are most FORTUNATE, in this economy that is apparently not so bad according to President Bush, that we have BOTH been laid off and now do not need to spend money on gas to get to work...we don't HAVE jobs! Chances for jobs in our area???? Not very hopeful.

Sent by Teresa Halliday | 2:15 PM ET | 06-09-2008

We definitely drive less due to the fuel costs this year. We eat out less and make less trips to stores of any kind.
It's even more infuriating to hear our President speaking on the subject. He knows we are worried?? We are past worried- we are going broke.

Sent by Loretta | 2:16 PM ET | 06-09-2008

The ship of state next year will need to LEAD the country beginning a NEW "war" for energy conservation and independence. Terrorism will soon be the least of our problems

Sent by Walt Stone | 2:18 PM ET | 06-09-2008

Lets reduce demand by re-implementing Sunday blue laws - just close all the businesses so everyone can stay home and save a bit of travel and gas consumption. Nothing else seems to work so why not go back to another era and use one of thier methods for keeping consumption lower.... Ok, the religious can still go to church, but please just go home afterward and not out to a restaurant.

Sent by Karl Schmitt | 2:19 PM ET | 06-09-2008

I work in a family and transportation bike shop and our sales in commuting bike and family bike (accommodating 1-3 kids) skyrocketed!

Sent by Martina | 2:22 PM ET | 06-09-2008

I'm a pawnbroker in New England with 5 locations. My customers are borrowing money and selling jewelery faster than at any other period in my 23 years in Business. The price of gas is a REAL pocket book issue.

Sent by Michael Goldstein | 2:25 PM ET | 06-09-2008

I have an oil heating furnace and can't afford to buy oil this coming winter. HOwever, since home values have also dropped I can't get a home equity loan to enable me to convert to a natural gas furnace. So I really don't know yet what I'm going to do to heat my home this winter. I may have to sell my home although I don't know if I can because the real estate market is so bad rightnow.

Sent by Julie Lumpkins | 2:27 PM ET | 06-09-2008

Will systems affected by rising oil/gas prices accelerate the trend of 'Localizing Economies' and 'Localvores' (people who consume only locally produced goods/services)? As big-chain stores pass high gas prices on to customers, producers who need less gas as an input can offer more competetive prices.

Sent by Abel | 2:27 PM ET | 06-09-2008

I've seen a funny and unexpected effect. As a delivery driver to cater lunches for local businesses, it has recently started to take more money through tips to make it worthwhile. Oddly though, the average % tip I get in a day seems to be inversely proportional to the current gas price. Every time it goes up, I usually know because of my tips before I get a chance to see the gas stations nearby. Sortof a double whammy there too.

Sent by Daniel Pane | 2:28 PM ET | 06-09-2008

There are so many different area of my life that this effects. I could go on and on, but one area that I have been focusing on is how I can use this crisis to revise my own consumption and way of life, and to look at how I can increase doing and supporting those activities that use less oil...or none. For example, I feel very strongly about supporting your local economy, buying things that have been grown and produced locally save a lot of gas expenses. Growing your own food. I know many who are converting their cars to different kinds of fuel, and many who are just driving less or trading in their car for a bike. I live in a rural area and have to use my car, but do drive less now...which means I see friends and family less...but this is how it goes. I try to really think of each decision I make and the ripple effect of it. I think we all should be doing this...not only for our pocket books but for our environment and future. Local businesses are hurting, due to lack of tourism and rise in transporting prices....but we can be innovative...Change is necessary, and it is good.

Sent by kali Ora | 2:32 PM ET | 06-09-2008

I've never heard anyone mention the possibility of gas rationing to reduce demand and bring down prices. Is this a feasible solution to bring down prices?

Sent by Rann in Macon | 2:34 PM ET | 06-09-2008

Everyone knew that there was a finite amount of fossil fuel, but like everything else that we want now, but don't want to pay for (war) we planned on passing the problem on to the next generation. Too bad we actually have to deal with a problem we created in our lifetime. Everybody wants to go to the party and no one wants the hangover.

Sent by David Dick | 2:35 PM ET | 06-09-2008

I have a small one person massage business (14 years) in Madison, WI. My "regular" clients are coming in less often. More people with pain are coming in as opposed to those who want stress reduction, they made up the the majority of my business in the past. My business is down about one third since January. I do not doubt this is due to the rising prices in every sector of the economy. I am spending a lot of time hoping and praying! I hope to stay in business - I applied for a part time job recently so as to guarantee some part of my income!

Sent by Brandy Larson | 2:36 PM ET | 06-09-2008

Why are the profits of US oil companies the highest ever in US history???? They are definitely getting a big bite of the apple, while the common folk suffer. My husband owns a small messenger service business and he was one of the last to rise prices since the gas hit $3.00/gal in Chicago area. I couldn't believe that some clients still complained. The prices affect us a lot. Also why isn't anyone protesting at all??????

Sent by Mari-Ann Pollu | 2:37 PM ET | 06-09-2008

Dear TOTN:
Living in Alaska, you'd think we should be able to siphon gas off the pipeline, but with no refining here, we're still paying $4.10/gallon.

Alaska is offering a rebate card to residents for $100/month to spend on energy: including gas.

Unfortunately, can't use the card on other expenses like shipping costs to send luggage instead of checking it for $15 to $25 a bag.

Will the government pick up the slack? At least the taxes on the consumer at the pump?

Thanks!
Marlena Wojcik
Eagle River, Alaska

Sent by Marlena Wojcik | 2:38 PM ET | 06-09-2008

Any discussion of a "Gloomy Economy" and high gas prices must, in my opinion, pay homage to the issues surrounding what is commonly called "Peak Oil". As discussed in the broadcast global demand and the ability to supply that demand is key in examining all energy prices. I recommend that folks interested in the potential impact of rising energy prices and even supply shortages check out TheOilDrum.com One problem occuring right now is reduced imports form VenMex (Venezuela and Mexico) impacting Gulf Coast refinery utilization and stockpiles. I believe the fundamentals of this supply and demand scenario far outweigh the "speculation" so commonly blamed for this recent run-up in fuel prices.

Sent by Dave Larkin | 2:43 PM ET | 06-09-2008

My question is about diesel prices. Unlike gasoline which seems much more susceptible to market forces (supply and demand)the demand for diesel is fairly static-there are roughly the same miles covered in diesel vehicles, nearly all commercial vehicles, and yet the price of diesel seems to be disproportionately higher than even premium gasoline. Is there an explanation?

Sent by Mark | 2:46 PM ET | 06-09-2008

We expect our economy to grow at the rate of about seven percent each year, meaning that our wealth doubles every ten years. The Federal Reserve regularly monitors and tweaks interest rates to assure smooth, controlled growth around that seven percent level. For example, consider the cost of gasoline. It was 25 cents per gallon in 1950. If it doubled every decade, it would be 50 cents in 1960, 1 dollar in 1970, 2 dollars in 1980, 4 dollars in 1990, and 8 dollars in 2000! That is what gas did cost in Europe. It hasn't quite reached half that in the United States, yet we complain bitterly about its recent rise toward that overdue level. The anticipated cost of a gallon of gas would be $16 in 2010 having increased in value in accordance with our expected and otherwise comfortable seven percent controlled annual growth in wealth. The reason, of course, is the subsidies provided the oil industry, and the excess profits. If this manipulation is supposed to be justification for drilling in the ANWR, it is a big mistake: We must preserve Earth's remaining natural sites of the all-important biodiversity upon which all life depends. We are losing tundra, ice caps, ocean productivity, grasslands, and rain forests, along with our good sense. Drilling in the ANWR not only won't produce any relief for gas prices for a long, long time; it would also be a bad example and could be the straw that finally breaks the back of human sustainability. P. E. Black, Syracuse, NY

Sent by Peter E. Black | 2:48 PM ET | 06-09-2008

My husband and I relocated back to NYC. We are paying more for housing (compared to our home in SC) as a single line item but when you add up all of our expenses, our car and the required upkeep was the reason our budget was out of control. It is nice to have a house in the country until you realize that $320 is needed each month for gas, let alone pay the car note, insurance and monthly maintenance to keep the car in good shape. We no walk everywhere (which is better for our health) or take public transportation. We actually put away $250 in savings this month. My family back South is suffering with the gas prices but are unable to make the move to a more centralized area.

Sent by Danielle Green | 2:48 PM ET | 06-09-2008

One of the guests noted that America has doubled it's GDP to OIL consumption ratio. Well, that seems potentially misleading given that it resulted partly from a transition to a more service and information-based economy. Many of our resource-intensive activities (including plastics manufacturing) have been increasingly outsourced to other countries. So not all of the higher efficiency (on an oil consumption to GDP basis), comes from improved fuel economy and conservation efforts. Efforts that have languished over the past two decades despite improvements in technology (on the drawing board and otherwise).

Sent by Alex J | 2:50 PM ET | 06-09-2008

My wife and I do not commute, so the fuel price in our area has an effect on our lifestyle, but to a somewhat smaller degree as others. We have been reeling in expenses for quite a while however, long before fuel prices became a concern. This not the only focus for us. By the way, George Bush, I must say, has no idea what's going on in his own back yard. What he says is irrelevant at this point.

Sent by David Eby | 2:51 PM ET | 06-09-2008

We drove two hours to the three day Western States Horse Expo on Friday. It is the premier event for vendors of horse and ranch products. Diesel on the way was $4.98 a gallon. When we planned the trip back in March, we were going to stay in a hotel. We traded Expo goods for hotel nights and drove home the same day. Care to guess who was the Official Truck Sponsor for the Western States? Toyota.

Sent by Janice | 2:56 PM ET | 06-09-2008

Your panelists using words like "nimble" and "resilient" to describe an economy which rewards speculative investment, while quadrupling the basic living costs of all Americans and decreasing their wages is obscene. The overwhelming majority of Americans have experienced consistent decline in their wages and standard of living as government policy has protected your "nimble" and "resilient" market economy. The market economy put in place by Ronald Reagan has nothing to do with the quality of life for Americans. Its goal continues to be the uncontrolled profits for firms and investors. NPR has a questionable link to that economy from its dependence on tax deductible donations from corporations who now get to run the equivalent of ads on "public" radio. Panelists on the importance of the oil industry making profits, and ecological travel as a solution have nothing to do with the interest of the public.

Sent by Pat | 2:57 PM ET | 06-09-2008

Hello,

The USA in being looted. From the financial "industry" to the gas companies to the automakers to the big box retailers.

The legal environment created lobbyist's and their pet lawmakers brought us here.

The underlying situation is never discussed, merely the symptoms.

Sent by Daniel | 3:01 PM ET | 06-09-2008

Gas rationing would raise the price and quite likely create a black market, Rann. And David Dick is right that this has been coming for a long time. Since the early '70's we knew this, yet we bought bigger and bigger cars and accepted the increased use of fuel for transport due to globalization. We allowed the market to function with less regulation. It's still functioning.

A friend passed this email on to me:

When I got home from work last night, my wife demanded that I take her out to some place expensive. So I took her to a gas station.

Sent by Steve Jones | 3:04 PM ET | 06-09-2008

I am an automotive salesman. As the prices are going up it becomes harder and harder to make any kind of comission on any vehicle larger than a standard sedan. Eventhough I sell Toyota, A leader in hybrid technology, right now I dont have a single hybrid to sell! If the market gets any worse, we will have to start looking for new work.

Sent by Alex G | 3:51 PM ET | 06-09-2008

I am in sales and have found that I am focusing more on arranging for on-line web demos; instead of drive by "personal visits".

Sent by Doug | 4:29 PM ET | 06-09-2008

High gas prices have hardly affected me at all. I live in close to downtown in a city with good transit service and decent bicycle infastructure. I ride my bike or take transit to work every day and my husband works from home. We only have one car (a fuel-efficient Honda Fit) between the two of us and as gas prices have risen, we have driven it less and less because we have alternatives: we live on a street where a bus comes about every 5 minutes and are within walking distance of rapid transit and we use our bikes more and more. Not to mention that we live on a "mixed-use" street - grocery stores, video stores, restaurants, drug stores, and everything else you could possibly want are all within a 5-10 minute walk of our home. I must say, it feels pretty darn good not to be a slave to high gas prices. Paying $1400/month in rent to live close to downtown isn't so bad when you only have to pay for one car on two incomes and don't ever have to drive it if you don't want to.

Sent by Kamala Rao | 5:29 PM ET | 06-09-2008

I've been riding my bicycle to work and for 90% of my other needs for the past 10 years. The price of gas has had a minimal direct effect on my finances. Yes, everything else costs more because it's more expensive to produce it and get it to my local store, but I have been practicing voluntary simplicity for the last five years so I am A) well prepared for rising costs, and B) not impacted by poor personal choices that assumed cheap oil for the next 100 years. If the government had taxed gas more after the embargo in the 1970s, the market would have responded by reducing our dependence on oil (and extravagant use of it as well) and we might have put this nasty affair off for another 40 years, by which time we would have either developed an alternative or a lifestyle adapted to expensive oil. We did this to ourselves.

Sent by Evan M | 3:03 PM ET | 06-10-2008

I'm a car dealer near Syracuse, NY and face this issue daily. My customers complain about "these high gas prices" and want to trade in their "gas guzzlers"(that's a term I hadn't heard since 1974), but if they were to slow down and reconsider the actual costs involved, they'd find:

Driving 15,000 miles per year, gas priced at $3.00/gallon (gas cost in 2006) and estimating 20 miles per gallon in a Chevy Truck, operating cost is $2250 per year. Now, at $4.00 per gallon, operating cost is $3,000 per year. OR: an increase of $750.00 per year or $14.00 per week.

If we need to alter our lifestyles, sell our heirlooms, or not take our kids to soccer practice because we cannot afford $14.00, the price of gas is not the real problem we have in our lives.

Latte 4.50
12 pack of beer 13.99
cigarettes 6.89 per pack

get a life and don't give in to the fear that the collective media has sold us, that's the real cost of gas

Sent by Sewell Claycomb | 5:13 PM ET | 06-10-2008

The failure of the windfall tax measure demonstrates the necessity of giving President Obama a Democratic House and Senate. These oil companies need to be reined in.

Sent by patricia verwiel | 7:43 PM ET | 06-10-2008

We haven't really seen a significant effect. It is probably because we (my wife and I) are pretty careful about energy consumption. We live 8 miles from work and ride to work together. We plan our errands to save time and fuel. Our cars are paid for, we have a fixed interest mortgage and we don't spend more than we make. We don't watch TV so we don't see a lot of commercials--consequently, we aren't temped to spend money on things we don't need. We definitly work hard but not as hard as some. I guess we've just always been careful with our money so the current economic situation isn't challenging for us.

You might say NPR helps us save money in this economy. You are our main source of entertainment, news and tips on reducing our carbon footprint. Best of all you only cost us a few hundred dollars a year in donations. Definitly a good deal!!

P.S. Modula is pronounced "Mow Doo La" rymes with Missoula.

Sent by Shawn Modula | 9:51 PM ET | 06-10-2008

For us money has gotten tight and has been for a while now. We have made some changes that helped out. Such as this Winter the house heat never went above 55F we used a space heater in the room we were in and move it into the Bedroom before bed. Now that it is summer it is easier. We have planted as much fresh vegetables in place of flowers this year in hopes of cutting cost that way. Seem to be eating healthier and lastly we have started commuting together to save money by only using one car. It all sounds great but has been very hard, a lot less spending all around. I can only hope the economy is making a turnaround, but from a Nevadan's point of view it doesn't look good for atleast a couple of years.

Sent by Don Candles | 12:37 PM ET | 06-11-2008

I've been reading about drilling in ANWR and it seems like it would have been more positive than negative to do so. But since we did't, we deserve to pay $ 5 a gallon for gas.

http://www.anwr.org/ANWR-Basics/Top-ten-reasons-to-support-ANWR-development.php

Sent by R. Lynn | 4:44 PM ET | 06-11-2008

I suppose I am very worried, oil is going to be twice as expensive for me this coming season to heat my home; my property taxes are going up 7%;my daughter and her family will need my financial help more than before;if I lose my part time online consulting fees my pension will not be enough to live on. Yet because I live simply and because I inherited a mortgage free home, a home my wonderful Depression/WW II parents bought 56 years ago and made into this little Shangra La of a place, I think I'm going to be okay.I enjoy the challenge of living with less, of saving money, of finding additional ways to make money. But I know I am who and where I am in great measure because of how my parents raised me, without their wisdom, humor, long range vision I wouldn't be here. I wish I could figure out a way for my community to create a system of mini-mass transit or a car pool board, every drop of oil we save matters.

Sent by Jane Nordli | 7:17 PM ET | 06-11-2008

I have unfortunately discontinued college. The demand and cost for driving to and from work and then to and from college has put me in a position where I had to start deciding which bills to pay and which ones to post pone..Its too much and increased gas prices are the only addition I have to include in my budget...there has been no raises at work or no increase in minimum wage to compensate so lack of education NOW to my demise...what a life...nothing has prepared me for this type of living. It is so depressing...

Sent by shannon | 7:47 PM ET | 06-15-2008

We have adapted to high gasoline prices by combining our errands, going out to dinner less, & renting less movies. We live close to work & are on the city bus line, so now during the week we leave the car at home. There is a grocery store on the way home from work which we stop at to get small items during the week.

Sent by Kerry Foster | 1:06 AM ET | 06-18-2008

My husband and I are professional photographers.We take those pretty pictures you see in calendars, magazines & postcards.For over 30 years we have jumped in our camper and gone searching for the beautiful, iconic places that are scattered across America. Gas used to be a small part of our traveling budget but now it costs about $150/day to get anywhere to go shoot. It is troubling and frustrating that we can no longer afford to do what has brought much joy to you, the consumer, and to us, the photographers. We doubt we will ever be able to afford to drive across America documenting the beauty that is everywhere along the way.

Sent by Donna & Larry Ulrich | 12:04 PM ET | 06-18-2008

I have worked my whole life looking forward to retirement, but unfortunately not being able to save much toward it, so most of my income is Social Security. I have been struggling since I retired, but managing to enjoy my life. But..with gas prices so high, all my dreams are finished. I can do nothing but sit at home and pray I have enough to eat and pay my mortgage and medical bills. I can't have a social life. I can't visit my family and friends. It seems so unfair to be living like this after a lifetime of working so hard.

Sent by Linda | 11:51 AM ET | 06-20-2008

I went from buying canned beans and tortillas to dry beans. I can't afford the jars of salsa with vegetables anymore and no use the jumbo jar of cheap mexican salsa that is just chiles and vinegar.

The 50% of the populace that has to eke out a life on 20% of the nations wealth is in serious trouble. To hear two very well paid jerks in Washington chuckle dismissively about our troubles isn't very welcome.

Sent by John Yaya | 3:01 PM ET | 06-23-2008