IF gas prices go much much more which it now is, it will bring the economy to a screaming halt. Especially the trucking, airlines, FedX and UPS. A single old person on just SS will not be able to afford gas to go to the doctor or grocery store.
Back in 08 when gas prices hit $4.00/gallon, my accountant said that was when EVERYTHING STOPPED! She has a lot of roofers, housing industry related people she does the books for (including my hubby and I), and her customers started dropping like flies. Very few people have recovered. We are still in business (by the skin of our teeth) and some of her customers have recovered, but it’s very shaky. 2008 was the last time we raised our prices, and I don’t DARE raise them now, even though our costs skyrocketed right AFTER we raised them (we have a small finishing company, and things like stain, lacquer, thinner, etc. are mostly petroleum based).
If prices go to $5.00/gallon, we will more than likely go bankrupt. Funny thing is, once the price came back down, none of our suppliers lowered their prices on lacquer (go figure...HUGE SARC). If they start going up past $4.00, we’ll start seeing the price get raised again, at the same time all our customers are squeezing us to LOWER our prices! I realize LUMBER may have come down for the cabinet builders, but not for us finishers! We just finished what should have been a $6500 plus job for less than $3500, just to get the business. It’s for a spec home that will hopefully lead to more business in a high end, gated community on a lake, and practically all the subs on the project GAVE AWAY their product just for the ‘chance’ in the future. I hate that bastard in the white house more and more with each passing day!