What will happen to the US economy if gasoline prices reach $7 per gallon?

Answer 1

We will probably go into a depression.

Answer 2

Gas prices aren't much less than $7/gal in some countries because the government taxes gas at such high rates. Some of those economies are doing just fine and others are struggling, but price of gas isn't a major factor to the healths of the economies.

If gas became that expensive, car companies would probably figure out real quick how to make cars that would get 60 mpg. We'd use trains as much as we could to ship goods. We might choose jobs or homes that are closer to our work. We might choose to buy a bike or scooter for some of our trips.

Alternative fuels would become cost competitive. So, we'd see more options for fuel for transportation. Ethanol, hydrogen, electricity (coal/nuclear) and probably some unheard of fuel would start to penetrate the marketplace deeper.

Environmentalists may change their minds on drilling in ANWR. Oil that is not cost effective to extract at today's prices would become cost effective.

Things would change, for sure. But a free market is incredibly resilient and innovative and typically finds solutions to problems. That's the whole point of free market prices. When the prices increase in a certain area, it attracts capital investment, which in turn produces solutions that either reduce price or make the expensive input obsolete.

Answer 3

Personal I do not think that gasoline will reach that high of a prise , not in my life time. The economy will with-stand that high price in some other way so the cusomer can bare the high prise, maybe other things might go down to the early 1900 price range to balance things out.

Answer 4

i'm no longer truly particular what to imagine about it. I difficulty that gasoline expenditures are hitting some households not common, yet I also difficulty about the environmental effect of our present day existence variety. My husband and that i have continuously lived in cities, yet about a three hundred and sixty 5 days in the past we moved and chosen a house close to mass transit. Our son walks to school. that is not any longer a decision each body can make, even if it signifies that our motor vehicle strikes about 20 miles a week, and frequently a lot less. gasoline expenditures nonetheless effect us, of direction - that is contemplated contained in the price of groceries and amenities. yet i am going to no longer help yet imagine that if some months of economic discomfort presses our leaders to imagine about a thanks to inspire option fuels and sustainable communities? the lengthy time period advantages would properly be important. because truly, I see this as a prelude to destiny disaster. all of us comprehend oil is a finite source.

Answer 5

High gas prices ripple through the entire economy.
Goods and services. Taken goods to the market place.
The consumer will pay the price in the end. The Arabs have more
of our money to spend. Our dependency on oil has increst.

Answer 6

I think if gas gets that high there will be an uprising by consumers, I know I won't do much driving at that price and if people don't drive then gas prices would have to come down. I know it isn't possible to not drive but to drive as least as possible and stay close by home to shop and to frequent stores.

Answer 7

I believe if the gas prices rise to that, everything is going to come to a stand-still. My husband is a truckdriver. An owner-operator. He pays for his own fuel...and the problem is that a lot of the loads he hauls don't have fuel surcharges, which it what helps to pay for the price of his fuel. Lots of truckers have to dead-head (drive several hundred miles with no pay to pick up a load). The money for this fuel comes out of their own pockets...they don't get paid for this. Fuel prices getting ridiculously high like that could bring the trucking industry to a stand-still. If that happens...I honestly believe America will come to a stand still. Truckers deliver about 80% of the nations goods, whether it be food, products, fuel...clothing..whatever. Truckers won't be able to afford to deliver the goods...people won't be able to afford to drive to their jobs. Salaries don't rise with fuel prices..pretty soon they would be working to pay for their gas just to get to work. Everything will come to a complete standstill...I honestly believe that...if no one can get to wqork, noone can shop...if truckers can't deliever the products, there will be nothing to shop for.

Answer 8

Nothing much. It will be harder on the poorer people who have to scrape $ together to get to work & back but richer people will still drive their behemoth SUV's. The only good thing is that it is making people mad & fueling demand for alternate fuels & alternate fuel vehicles. (And I don't mean ethanol, it is only a DIFERENT fuel and just as expensive) Bio-Diesel is a good choice and so is solar. We need to look WAY MORE into solar power as it is absolutely free, totally clean and there is plenty of it. But of course--there is no way to regulate it for profit so good luck to us!!

Answer 9

There will be more people walking or riding bikes. It will hurt the auto industry, tourism, truckers(who carry all kinds of goods], plus many,many more that we haven't even thought of.

Answer 10

EVERYONE WILL ADJUST. NOT JUST HERE BUT WORLD WIDE. YOU HAVE TO REMEMBER THAT IT WONT JUST BE OUR ECONOMY. BUT IF GAS IS 7.00 HERE, ITS GOING TO BE MORE EVERYWHERE ELSE IN THE WORLD. IT WOULD BE A HECK OF AN ADJUSTMENT BUT WE DO IT NOW ANYWAYS.