fuel costs weigh on consumers
Gas prices are still on the rise and home values are decreasing, so should it be any surprise that our economy is in a slump? With the gas prices taking such a high toll people are focusing more on necessities and are spending less on impulse buys. Applebee’s is even suffering from the gas prices because people are less willing to spend money on dining out and are opting for the less expensive meals at McDonald’s. The purchases of many expensive items are being avoided like new cars, vacations, and even remodeling the house. Many Americans are changing there complete lifestyles from the route they took to work to weekend plans . It is difficult for Americans to have to make such difficult tradeoffs between things they want and things they need.The slump says a lot when even Wal-mart is seeing a decline in profits.
How much longer are we going to be in a slump? What other unintended consequences will arise due to high gas prices?
1 comment:
I agree with Brandi and predict that our economic slump will continue on for a good while. As mentioned before, the war in Iraq and the complete chaos in the Middle East is the main contributor to high gas prices that we face. Since gas prices have gone up, so has everything else. Our society is dependent upon fuel-powered vehicles. Restaurants and stores receive their supplies and stock through loading trucks, which run on gas. Because of the higher price of gas, a higher price of the product must be charged in order to cover the increased expenses of receiving supplies. Until an alternative to gasoline powered vehicles is found, many businesses are going to feel the effects of this slump.
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