For almost a year I have been reading warnings from various economists about the market. They all have a seemingly valid reason for why the stock market is going to crash soon or at least experience a recession. Yet, the market is ignoring their claims and is climbing fast.
Now I am thinking about it from a personal bias and I am worried. The more gas prices go up, my family has to move money around in our budget to accommodate. No big deal, just a little less spending on non-essentials. First, it meant less money going into savings. Now it means less eating out. Soon it will mean less shopping for the kids.
If I were the only one experiencing high gas prices it would not be so bad (for the country, still sucks for me). But gas is an egalitarian budget squeezer. Everybody that counts as a consumer drives a vehicle. Our economy requires us all to spend money on crap we don’t really need. When we collectively spend extra money on gas we have to spend less on stuff we don’t need.
If 100 million people spend only $.05 a day more in gas over the year…
That adds up to $1.8 trillion lost yearly from the collective American slush fund.
Gas prices are actually up $.34 since last month. Americans use 873 million gallons of gas a day.
That is a yearly loss of $108 trillion. (Assuming all 100 million people use 1 gallon of gas a day)
Now if that doesn’t cause a downturn in the market soon then nothing will.