What happens when gas gets to $7-$8 even in the south?

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Gas is going up quickly in the past couple days. 30-40 cent increases in my area.

Serious question - will the economy come to a grinding halt at a certain price point?

Will we see the bottom fall out then and then subsequent deflation due to immediate loss of demand?

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I'm gonna start knocking over gas trucks.

if politicians aren't strung up than we truly have failed as a nation.

15 an hour only working 20 hours but spending 50 a week in gas....


I mean you are making 1200 a month before taxes but spending another 200 a month is gas.. so what you are really making 800 bucks after taxes and gas.... doesn't include other expenses...


People fricked

Probably see a big increase in gas theft from parked cars.

Seems like ppl don't care so far. I'm off during the week sometimes. While running errands I'm hitting traffic at times during the day when their was no traffic before. I'm always like do these ppl not work or care about gas prices ?

Well, I had to replace my old Lawn Mower and sold out and purchased a battery powered...frankly the damn thing works great and folds away nicely.

I’m hopeful that we are close to the top end of things now.
A bad hurricane in the next few months could really fck it all up though.

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Unskilled labor that has to commute might legit stop showing up because work isn’t nearly as profitable anymore

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Joe says no problema - will just fly a few hundred thousand more into your area. Simple Bidenomics.

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Serious question - will the economy come to a grinding halt at a certain price point?

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Yes, it has to. You can't run an economy without fuel. We're quickly closing in on the point where the hourly pay of low-end earners (convenience store clerks, wait staff, part-time, etc) will equal a gallon of gas. That's going to cause many who live 10+ miles from their job to reassess whether it's more cost effective for them to continue to work or just go on social services and work just enough to stay within whatever tier in whatever program(s). California is already seeing $7-$8 but their cost of living is already far higher than most of the South. For that to hit here would likely mean their seeing $10+ across their state.

For $7-$8 here, it would likely mean diesel running around $9-$11. At that point we could expect to see many businesses start to close as people simply have to save more just to drive back and forth to work. Pretty much anything in a mall would be vulnerable as people would be choosing gasoline over new clothes, jewelry, entertainment, etc. Restaurants would be hit especially hard although fast food places which continue to draw business may actually thrive (a combination of fewer consumer choices and being able to be more picky about whom they hire) if they can keep their prices/portions to an acceptable level for consumers.

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Will we see the bottom fall out then and then subsequent deflation due to immediate loss of demand?

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Normally, yes. The big problem we face in achieving this cycle is one which wasn't around during the Depression: the proliferation of government welfare programs.

It wouldn't shock me to see Congress, when faced with such a crushing economy, focus on pushing more funds into public assistance programs, this would definitively keep deflation from happening (or, at least, lessen the extent to which it happens). Part of the process is people going back to work and taking whatever they can get in order to feed themselves and their families. By having a generous welfare infrastructure people can then simply opt to not do anything while just living off of EBT, SNAP and Section 8. The more demand there is, the more Congress will feel pressured to increase benefits.

It's not a grand living, but it beats busting your arse for 10 hours a day selling apples for $.05 each just to afford a roof over your head.