Posted on 02/21/2012 5:40:44 PM PST by blam
Can Americans Handle $150 Oil?
February 21, 2012
Douglas A. McIntyre
The International Energy Agency said Europe could “cope” with a supply shortage brought on by a drop in imports of crude from Iran, but that prices might temporarily reach near the $147 a barrel peak of 2008. The chief of large energy firm Vitol told the Financial Times that crude could reach and stay at $150. It is not entirely possible to determine what oil at $140 or $150 would do to the average American household budget, but a look at Census data suggests that the effects would be harsh.
The Consumer Expenditure Survey done in 2010 showed that the average consumer unit spent $49,067 in 2009. That unit:
includes families, single persons living alone or sharing a household with others but who are financially independent, or two or more persons living together who share expenses.
The budget for these households was very tight. More than $10,000 went to shelter. Another $6,400 went to food. Over $3,100 went to health care. Another $5,500 went to pensions and Social Security. More than $2,700 went to vehicle purchases.
The Census data showed that in 2009, a consumer unit spent more than $3,600 on utilities, which included heating. Another $2,700 was spent on gas and motor oil.
Crude prices averaged approximately $90 a barrel last year, and in late summer they were below $80. Oil prices at $120 would be a 50% rise from the amount around Labor Day. At $150, the figure is nearly double.
What Americans spend on gas, oil and home heating oil varies widely from place to place and family to family. Urban dwellers may not own cars. Commuters in some places have 50 mile round trips to and from work. People who live in cities are more likely to weather high gas prices than others. But for those others, gas prices at or above $4 a gallon could be catastrophic. For people who drive a car that gets 25 miles per gallon, the cost of a medium length commute could increase by several hundred or even more than $1,000 this year. The government data on consumer spending shows that amount would be a burden, and other items these households buy might not be affordable at all. The Census data shows that entertainment expenditures are $2,700 a year. Apparel is just over $1,700. And food consumed outside the home was just over $2,600. Each of these activities is essential to consumer spending activity, which remains about two-thirds of gross domestic product.
Economists remain worried about what high fuel prices will do to GDP. It is really not that hard to tell. The typical American household budget is not terribly elastic, and consumer spending is about the only area where it has flexibility if energy prices jump.
No, our economy will crash as a result.
The pain would be worth it.
Our family budget couldn’t handle it for any extended period of time.
No. We will all cut back on all discretionary spending in order to try to put fuel in our cars and food on the table. Food prices will soar because farmers and truckers must raise their prices in order to survive. No one who drives or eats should vote for any Democrat candidates if this occurs.
We will do nothing by car. We will move on to bicycles for going to church. Dad will take his motorcycle to work and if need be will cycle there as well. There is even a bus that runs from our house to a half a block from his employer.
I can walk to the grocery store. With two kids and a wagon we can make it through the summer. In the fall, we will wait until the President with the R comes in January.
The factory here in Indiana will be on turbo production.
http://automobiles.honda.com/civic-natural-gas/?ef_id=EzVPREYoSh4AAIqu:20120222013432:s
It depends, if it was American oil from American
wells bringing in 150 a barrel
it might not be too bad
I second your opinion
We may have zero choice in the matter.
This isn't a supply and demand problem, fuel is available- it is our money is being devalued, and people who sell oil want more of it because they know we are printing it.. - Tom
Zer0's campaign promise was high priced oil and electricity - so $150 barrel oil is just him accomplishing his goal, and placing the blame anywhere and everywhere else.
No.
Our family would need to re-work things and I’m guessing we would drop some frills like Direct TV and eat less meat yada.
The pups would need to give up their rawhide habit. :p
We have places we can cut but hopefully this isn’t long and drawn out because it would certainly take a toll on us.
I’m hoping for $8 gasoline just to get rid of Obunghole.
It will be a long hot summer with higher electricity rates and 8 bucks a gallon.
Of course Americans can handle whatever the price is. They are Americans not Dims. They would adjust their budgets, adjust their behavior and cut back where they had to.
The issue as you say is that this will slow the economy. Of course this problems is due to two sources:
1. The entire Dim party in the tanks for the socialist greens.
2. The GOP idiot Senators from Maine among other GOP Senators who blocked drilling in Anwar
One of Obama’s czars said that the goal was to have gas prices in America equal those in Europe.Looks like their plan is on track.
We handled it in 2008. It helped usher in President Barack Obama. What will it usher in or out this time around?
Obama is following Lenin’s saying, “The worse, the better,” (for creating the preconditions necessary for a communit coup.)
He just needs to dial it back enough to get reelected, so that he can finish the job.
B. Hussein will blame the rich people and George Bush for the price of gas. And all his brain dead, kool aid drinking supporters will moan and wail about how they can’t afford food or transportation because of the evil rich.
The hard-working taxpayer will just keep working hard, paying taxes and live a spartan life to try to keep up and pay their bills.
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