As crude oil crossed $80 a barrel Thursday, the Wall Street Journal ran an interactive poll with its readers.
What sustained price for gasoline would cause you to cut back on other household spending?
The graph above shows the on-going results of the non-scientific study. You can chime in, too, at http://forums.wsj.com/viewtopic.php?t=805.
As consumers cut back spending, the economy slows down which generally leads to lower mortgage rates and weaker housing markets as a result of job losses. According to GasBuddy.com, some areas of San Francisco are already topping $3.50/gallon.
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It is said that the demand for gasoline is inelastic - but there is some elasticity. At some point, people will figure out a way to cut down their driving so that they don't have to cut their other spending as much.
I agree with Brian. I'd cut back on driving (am doing so already, in fact, which isn't easy, given I live out in the country and am a real estate agent) WAY before I'd let it cut back on other household spending. And $3.50 a gallon is past the point that I'd do that, as I'm already doing it at about $2.60/gallon for diesel.
By the way, that illustration? It's very effective, but it says it's copyrighted, hope you got their permission to use it because Dow Jones of all people can afford the big guns to defend their copyright.
Since Driving is a necessity for me. Prices would have to sky rocket for me to cut back - greater than $10/gal.
I would be looking long before that though for an electric car or even build one for myself. "Necessity is the mother of investion!"
Unfortunately, being in real estate means that I just have to suck it up no matter what. Can't do this job in Charlotte on mass transit.
Brian - I hope we can figure it out soon!
Trica - I did give them their props, so let's hope it won't be a problem. Thanks.
Matthew - I've been thinking about getting a hybrid for my next car. We'll see.
Leigh - That's funny, but I definitely see your point.
Ilyce - I'm not talking hybrid! I'm talking full blown electric. Have to plug in every night (no big deal - gotta do the same with my cell phone). or even a fuel cell/solar cell. We talkin cutting edge.
We also talkin gas around the $4.5 and up range!
How much electricity would it take to run a car, and how much would it cost? Surely a lot more than to run a cell phone?
I should know this stuff. Darn. Back to researching.
And citing (giving them "their props") only addresses plagiarism. Copyright violation involves permission or lack thereof even if you cite the source - next time you post a blog, check out the wording of the little box that pops up asking you about it before it'll let you post. I believe it specifically mentions permission.