Gas is cheaper than my haircut
Friday, November 14, 2008 at 11:47PM Tonight while driving home I saw something that I didn't think I'd see again. No, not a Republican in New York. Even more unbelievable than that: $1.96 gas.
Jersey City and Newark, New Jersey, are known (among other things) for having some of the cheapest gas in the country, and outside the Holland Tunnel it's down to $1.96 a gallon.
This actually represents good and bad news for consumers and the economy. On the one hand, every $1 dollar reduction in gas prices means $80 billion in annualized savings for drivers. To put that in perspective, that's twice the size of the stimulus rebate program last spring. The economy could certainly use an $80 billion dollar fusion.
On the negative side, the fact that gas has dropped over $2 dollars in the past 4 months means that demand is in free-fall, which likely means the economy is in free-fall. This is the most rapid decline in demand in memory, and it's probably an indicator at how badly the economy has seized up.
Everyone is hoping for a quick and shallow recession, but if oil prices are any indication, it's likely going to be anything but.
Reader Comments (2)
Thats amazing and Lydia still cuts your hair doesn't she.
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