Cost of Gas Impacting Households
Will this cause GDP to go up as more households turn to their credit cards to pay for what they can’t do without? High gas prices were one of the drivers behind a positive reading in GDP several years ago, even as America descended into a recession (or remained in one that was intensifying). This is kind of like the CPI. The CPI is held down in part by a stagnant job market, and deflating housing costs. But your house turning more upside down, and your real wage shrinking only show up as positives in a government report reflecting a Marxist economic theory.
Gas prices eat up $368 a month of your income – May. 5, 2011: money.cnn.com/2011/05/05/news/economy/gas_prices_i…ories