Wednesday, May 4, 2011

What impact do rising gas prices have on urban life?

A recent PBS report has some interesting data.  For instance, "a recent analysis form Deutsche Bank finds that every penny increase in average gas prices at the pump in the United States equals $1.4 billion siphoned out of the US economy. But a lot of the real pain depends on where you live, what stage of the "recovery" your community is experiencing and your driving habits."  How have rising gas prices affected your life?

8 comments:

  1. Responding to the Oil Prices: $10=25 Cents at the Pump
    The key is assuming this price rise will crowd out spending somewhere else. With credit cards and debit cards being the main way we make purchases consumers do not always know their limits. Plus after a while we get used to the higher gas prices and go back to our old spending habits.
    I’d like to see what the oil prices translated to prior to an increase in the prices.

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  2. I agree with the "return to our old habits comment." That is not only a concern here but also with the housing and other crisis. We have a very short attention span so we must learn our lesson and change before everyone starts watching american idol or something.

    and 1 cent = 1.4 billion; crazy how much gas we use but does this include other oil related products?

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  3. The rising gas prices have affected my life, and thus have affected the Kalamazoo County.... Hang in with me here. I don't drive too much, but on weeks where I have to fill up my tank, I am not going to the bars or buying groceries for that matter. This spirals outward to my friends who are in similar situations, never mind those who are working and have kids.

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  4. On the matter of gas prices, I find it difficult to believe that consumers will simply "return to [their] old habits" after they grow accustomed to the new, higher gas prices. While the shock value of higher gas prices will eventually wear-off, incomes will not be any higher. The lower consumer spending after oil-spikes is not a conscious response by consumers, it is a response of necessity as incomes remain stagnant. Because of this, consumer spending on other products is unlikely to increase until either income rises or oil prices fall again.

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  5. I think the rising gas prices are forcing people to make decisions that they shouldnt have to. Like buying gas to get to class/work, or getting food and prescriptions, etc. Its bordering on the ridiculous. And right at a time when people are hurting the most.

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  6. Raising gas prices has not affected me directly at the moment because I do not have a car at Kalamazoo. Though, I know it will really affect me this summer when I am back in Detroit. Living in metro Detroit means things like friends/ family/ work/ etc. can be very far away. This pass summer I was over 40 minutes away from the place I worked and about 45 minutes away from my best friend’s house who I go to college with and went to high school with. If gas prices continue to rise until summer not only will be unable to afford having an internship but will also be unable to visit my friend as often.

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  7. Well rising gas prices are extremely annoying for us I think they will benefit us in some way. In 2008-2010 when gas was under $3 the conversation of alternative energy and efficient living seemed to die away, but then suddenly gas is again over $3 and now over $4 and poof we are back on the alternative energy bandwagon (speaks to how short America's attention span really is). As everyone above has mentioned higher gas prices make necessary trips a financial nightmare and leisure trips an impossibility. At least now America's attention is back on alternative energy and efficiency and in my opinion where it should be.

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  8. I agree with Chris that at least one positive outcome of increased gas prices is a push for more sustainable sources of energy.

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