Economic Stimulus Package Equals Lower Gas Prices

I believe that the greatest economic stimulus package that could have ever been implemented is LOWER GAS PRICES.

Seriously.  I believe that super-high gas prices forced people to trim their spending to essentials and to restructure their spending – including eliminating gas hogs.  Now that gas prices have eased there is extra money each month.

I do not know about you, but I saw a ton of people at Wal-Mart on Black Friday shopping with cash.

The average American family is getting an extra $50 to $200/month simply because of lower gas prices.  That equates to an extra $600 to $2,400/year.

What do you think? 

11 Comments

  1. john on December 4, 2008 at 4:33 am

    Joseph

    totally agree

    in the metro atlanta area that was totally my observation as I drove around doing business etc for the last few months… when gas prices went down people were back at restaurants…. walmart was packed… and roads were full of cars… At 4 something per gallon it was a ghost town

    jb



  2. Lynne on December 4, 2008 at 6:13 am

    I agree! We filled up our tank last night for $35. There was a time that it was costing us $75. For our family, that’s a $40/week savings…$160/month!!!! I wonder if grocery prices will go back down? 🙂



  3. Robin on December 4, 2008 at 6:14 am

    Agree. When gas was topping $4 a gallon, we just stayed at home more. Our disposable income was in our gas tanks getting us to work. Now that they’re down, we can go shopping, out to eat, or just taking day trips. Love it’s back down, but I’m wondering if people are going back to their bad habits.



  4. Saving Freak on December 4, 2008 at 6:23 am

    what everyone misses is the overall deflation that is caused by oil dropping so low. This is one of the reasons the 90’s were such a boom.

    The U.S. survives off of trucking. As the price of moving product across the country drops so does the cost of each product. The one big advantage of oil spiking like it did is that many business have started looking to freight trains to help with moving cargo. This means more competition and hopefully even lower prices over time.



  5. Eric Hood on December 4, 2008 at 6:44 am

    This week we were OFFICIALLY told that our economy is in recession. Historicaly once it has been substantiated that we are in a recession, we are typically at the tipping point of coming out of one. I believe the drop in gas & oil prices will be the catalyst for the recovery.



  6. Saving Freak on December 4, 2008 at 7:32 am

    The problem with that theory is that we are in a global recession. Typically a global recession lasts for about 18 months. Now the real argument is for when did the recession start. Most analysts are saying somewhere in the first or second quarter of this year. That means it could last until some time in june to december.

    Of course if the government keeps getting involved (like it did in the 1930’s) it will last longer since the market will take more time to correct itself.



  7. Ann on December 4, 2008 at 7:47 am

    Dave Ramsey said that spending for Black Friday was up 3% from last years Black Friday. So people are spending. Yeah!!! That helps stimulate the economy.

    Lower gas prices will definitley help those that are trying to get out of debt in paying that little extra toward bills and achieving debt freedom. Again Yeah!!!

    But I see one draw back. We lose focus on developing alternative fuel and the dependancy on foreign oil continues once the recession is over.

    Just like our budgets we have to concentrate more on the overall future outcome.



  8. rebekah on December 4, 2008 at 8:00 pm

    i agree, i think lots more were using cash. we didn’t purchase anything friday b/c we have no money, but our parents did… my husband’s parents (who have always been very wise with their finances) said they had saved $200 each paycheck since this summer just for christmas shopping! i can’t wait to one day say we can do that! looking forward to debtfreewilmington and the seminar saturday!



  9. Daniel on December 5, 2008 at 10:06 am

    I paid cash at Target on black friday and the lady looked at me as if I was crazy! I don’t think she knew what to do with it, but she took it anyway. Sure gas prices have dropped, but until diesel comes down further things will still cost more at stores! Is diesel not cheaper to refine than gasoline? I am sure that it is just the governments way of wanting to keep us in debt! Saving freak probably knows this answer…..



  10. JeffrO on December 6, 2008 at 7:35 am

    Joseph,
    Count me as one who falls totally into your hypothesis.

    When gas prices rose to over $4/gal in our area, it was killing the budget. Groceries, dining out, entertainment, summer road trips, etc. — everything went into survival mode! Now with gas around $1.65/gal in these parts, the extra cash has been reallocated to paying down debt faster…. we had our scare and it did not feel good.



  11. Mark Asbell on December 9, 2008 at 6:19 am

    Absolutely. Being an outside salesperson driving is about 25-50% of my total expenses depending on my schedule. So last month alone I spent about $300 less than what I had budgeted for gas. Just in one month!



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