It appears as if gas prices will stay in this $3 range throughout the next month or two, at least, until we can get these Gulf refineries up and running again. Of course, that's providing another hurricane doesn't hit it...
I'm wondering how all of this will affect the American economy. I saw something in today's paper that said there is an expected 5% increase in retail sales this holiday season compared to last year. And I thought, did they take into account this 75% increase in gas prices? If this really maintains, I think it would seriously cut down on the average American's spending money for Christmas presents.
I freely admit that I'm ignorant about demographics and economical factors, and I think it wouldn't affect the upper class, because $5 a gallon would mean nothing to them, except that they might have to wait til next week to buy the newest iPod. And it wouldn't affect the lower class, because they can't afford to own a car anyway. But it would affect the majority of Americans, the middle class, who own a house and a car or two (or three) and pay lots of bills every month but can still afford to pay them and have money left over to buy stuff with.
It's that disposable cash ~ what most commercial businesses rely on for their profits ~ that gas prices will eat into.
The top grossing movie last weekend only made $15 million, less than half of a normal weekend. Is this an early sign of people having less disposable cash? Or is that just because the last two weekends haven't offered anything too exciting and attractive?
I read somewhere that most companies get a quarter of their annual revenue from Christmas/holiday sales. Will they get that quarter this time? Will companies go out of business? Cut workers? Increase unemployment? Start a second Great Depression?
Or am I just a seventeen year old who doesn't understand the economy?
Edmond the Hun
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Dawn Eden's Blog On: Renée's split inspirational?
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what the heck?
whatever.
economy ~ who needs it? i shall escape to the Alps. bartering and living in relatively safe solitude.
my main concerns now do not include the economy ~ they include comm. service hours, turning in college apps, ACT prep *gag*, and achieving A's in physics and precalc.
it's noble of you to try to save the world. i shall be your sidekick and wear a bright yellow cape while saying things like "holy economy edmond!"
-Sanguine
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