Americans, Hurt by Rising Gas Prices, Curb Spending, Poll Finds

[L.A. BRONCOS FAN]

Rich Miller Wed Jun 25, 5:01 PM ET

June 26 (Bloomberg) -- Most Americans say they are feeling the pain from rising gasoline prices and many are tightening their belts in response, a Bloomberg/Los Angeles Times survey shows.

``It costs me double to fill up the tank,'' says J.L. Harder, a 75-year-old retiree and poll respondent in Peoria, Texas. ``We don't go on vacation and don't visit the relatives.''

He isn't alone. Seven in 10 of those surveyed say higher gas prices have caused them ``financial hardship.'' More than 1 in 3 respondents say they have cut back on their spending over the last six months as oil and food prices surged and unemployment rose.

That's bad news for the economy. With consumers accounting for 70 percent of gross domestic product, any pullback in their spending would have an outsized impact on the economy. In a note to clients this week, Deutsche Bank AG economists estimate that U.S. annual growth may be cut by a half to a full percentage point if consumers spend less and save more.

``Consumers are facing so many different headwinds,'' says Jonathan Basile, economist for Credit Suisse Holdings Inc. in New York. ``It going to hold back growth for a while.''

Oil Prices

Poll respondents pin most of the blame for the 35 percent surge in gas prices over the last year on President George W. Bush, according to the poll. Almost 3 in 10 singled out Bush as the one responsible, followed by the oil companies, identified by 25 percent, and speculators, by 13 percent. Only 9 percent blamed foreign oil producers and the Organization of the Petroleum Exporting Countries.

The poll of 1,233 adults surveyed from June 19 to June 23 has a margin of error of plus or minus 3 percentage points.

Poll respondent Michael King, a 47-year-old Chicagoan who works for an auto-parts supplier, says he is considering selling one of his three cars, a Mazda Millenia, that runs on higher- priced premium gas.

The increase in gas prices has been a double whammy for King. Dearborn, Michigan-based Ford Motor Co., one of his company's major customers, has cut production as demand for gas- guzzling sports utility vehicles and light trucks declined.

``It's not a ripple effect,'' King says. ``It's a tsunami.''

Electric Cart

Jody Felton, 48, has found another way to cope with the pain at the pump: her disabled husband has taken to riding his electric cart to go shopping near their home in Cedar Woolley, Washington, rather than going by car.

Faced with climbing prices for gas and food, Americans are spending more of the tax rebates they received from the federal government than they intended to just a few months ago.

Thirty-five percent of those who have received or expect to receive a rebate say they intend to save it all or use it to pay down debt. That's a contrast to a Bloomberg/Los Angeles Time poll in February, when 67 percent said they planned to use the rebate for those purposes. Since then, gas prices have risen 30 percent.

In this month's survey, almost a quarter of those receiving rebates say the money would go to paying for household expenses. Ten percent say they would make new purchases; 2 percent would use the money to finance a vacation.

According to the Treasury Department, the government has already handed out almost $71 billion in rebates, with another $30 billion or so to come.

Rebate Checks

``It's just paying the gas bill,'' says Harder, the Texas retiree, who received a $600 rebate from the government.

Americans want the government to do more besides the rebates to help the economy, according to the poll. A majority favor the federal authorities allowing more drilling for oil and gas in and offshore the U.S. They also want the government to do more to help homeowners facing foreclosure and to regulate Wall Street in the wake of the subprime-mortgage crisis that exploded in August.

Not surprisingly, Americans are feeling gloomy about the economy. Eighty-two percent of those surveyed describe the economy as performing badly; that's the worst assessment in 15 years. Half of the respondents say it is doing very badly.

And it isn't likely to get better, those surveyed say. Only 18 percent of respondents see the economy improving six months from now. Thirty-one percent say it would get worse. Forty-five percent see conditions as the same.

``I'm starting to understand how my grandfather felt in the Depression,'' says Joyce Wilkinson, a 58-year-old retiree in Lake Barrington, Illinois. ``Do I need to take all my money out of the stock market and put it under the mattress?''

http://news.yahoo.com/s/bloomberg/20...g/atloxvuxkb0a

[Bob]

And some are happy about the temp reduction in greenhouse gases, and feel the "cost" of crippling our economy, is more than worth it.

I heard today that our inventories actually went up based on number released today, and that we have cut back our use quite a bit.

[L.A. BRONCOS FAN]

[L.A. BRONCOS FAN]

Consumer Confidence at 16-year Low
And who was ruining the economy 16 years ago?

Link

Excerpt:
Consumer confidence fell in June to its lowest in 16 years as high inflation continued to sap confidence and pushed expectations for the future to a record low. The Conference Board said its inflation expectations gauge matched the record-high 7.7 percent it hit in May, which will keep Federal Reserve policy makers concerned over price growth as they meet to decide rates on Tuesday and Wednesday. The Conference Board said its measure of consumers' mood declined to 50.4 this month -- the lowest since 47.3 in February 1992. Economists on Wall Street had been expecting a reading of 56.4. The index has now dropped by more than half since last July, when it was at 111.90. Since then, housing troubles (and gas prices) triggered the most severe credit crisis in at least a decade. Consumers made a grim assessment of their present situation and their future prospects.

That's why voters should choose Democrats - but Democrats won't list the reasons why.

If the pitiful Democrats weren't so world-class stupid, they'd remember to explain that in every election cycle, Democrats help people and Republicans ruin the economy by giving hueueuege tax breaks to the already super-rich bastards. The Piti-crats step in the same hole and break their leg every election.

[L.A. BRONCOS FAN]

[SoCalBronco]

The businesses of this fine state pay for my gasoline.

[Los Broncos]

Still cost me five bucks, not a big change.

[L.A. BRONCOS FAN]

[L.A. BRONCOS FAN]

[Hotrod]

I'm thinking of buying a new boat this month. I'm doing my part.

[L.A. BRONCOS FAN]

Heh!

Sounds like the Dubya solution:

"Everybody go shopping - that'll fix the economy."

[ak1971]

Originally Posted by Hotrod

I'm thinking of buying a new boat this month. I'm doing my part.

I might be looking for a new boat..Have my eyes on a new Cobalt.

[Spider]

BOATS = For sissys that cant fly fish a stream .......

[ak1971]

Im going down to Tennesee to go get drunk and go noodling later this summer. Now thats the way to fish

[Spider]

Originally Posted by ak1971

Im going down to Tennesee to go get drunk and go noodling later this summer. Now thats the way to fish

[L.A. BRONCOS FAN]

Originally Posted by Spider

Bush's base.

[Hotrod]

Originally Posted by L.A. BRONCOS FAN

Heh!

Sounds like the Dubya solution:

"Everybody go shopping - that'll fix the economy."

Its really not a Bush issue. Its more of the fact that while you sit in a dark bunker holding gaff's hand and feeding each others conspiracy fears I'll be at the lake fishing and enjoying a cold beer.

[ak1971]

Originally Posted by Hotrod

Its really not a Bush issue. Its more of the fact that while you sit in a dark bunker holding gaff's hand and feeding each others conspiracy fears I'll be at the lake fishing and enjoying a cold beer.

exactly..some people actually have the brains to plan for certain things and not just blame everyone else when things go bad.

[Spider]

I blame Bush , you damn right I do , I have gone 19 days in a row without a day off , 12-14 hour days , you tough guys want to match work records ?
I just got a raise today 17.50 an hour and he pays me overtime pay for everything over 40 hours .... all of this means **** , cause my buck doesnt take as far as it used to , that ****ers is Bush's fault , tampering with the energy market ....And you are a fool if you think different .......I bounced back , I adjusted , but dont think for a second I dont blame Bush , and the ****ers that voted for his ass

[Spider]

My wife is shutting my ass down this weekend , Her and my Boss conspired against me . She wants me to take her to Alcova lake , or on top of the mountain tomorrow ....... yo uwould think she would understand that raising 6 kids and suporting her and not being on welfare is not an easy task ....... there goes an extra 24 hours on my check ...... soon as I can I am quitting my job now , I should be able ot work the weekend if I want . the Job is far from being done

[L.A. BRONCOS FAN]

Originally Posted by ak1971

exactly..some people actually have the brains to plan for certain things and not just blame everyone else when things go bad.

Like the way Bush planned for Iraq, (or the economy or Katrina or just about
anything) manned up and took responsibility when things went bad?

You make me chuckle.

[L.A. BRONCOS FAN]

Originally Posted by Hotrod

Its really not a Bush issue. Its more of the fact that while you sit in a dark bunker holding gaff's hand and feeding each others conspiracy fears I'll be at the lake fishing and enjoying a cold beer.

Where's your old sig?

[ak1971]

Originally Posted by Spider

I blame Bush , you damn right I do , I have gone 19 days in a row without a day off , 12-14 hour days , you tough guys want to match work records ?
I just got a raise today 17.50 an hour and he pays me overtime pay for everything over 40 hours .... all of this means **** , cause my buck doesnt take as far as it used to , that ****ers is Bush's fault , tampering with the energy market ....And you are a fool if you think different .......I bounced back , I adjusted , but dont think for a second I dont blame Bush , and the ****ers that voted for his ass

get over it.....oh blame me for everything, yes I voted for Bush twice..yes I do admit it..not like all you flip flop MFers..I provide for my family and will continue to do so with who ever is in office. adapt and thrive!

[L.A. BRONCOS FAN]

[Spider]

Originally Posted by ak1971

get over it.....oh blame me for everything, yes I voted for Bush twice..yes I do admit it..not like all you flip flop MFers..I provide for my family and will continue to do so with who ever is in office. adapt and thrive!

well you helped **** this country up ........no doubt about that , who did I flip flop on ?
you provide for your family ... thats your ****ing job , but why in the hell vote for someone that makes it even harder ?
I am blue collar , got a skilled trade , I vote blue collar ,some of you people vote against your own financial interest , maybe you think I vote rich I will become rich ......
only one way to become rich , hard work , lots of hours of labor , blood sweat , tears ........
you can invest all you want , you might get lucky , but there is no replacing budgeting your income and hours of labor .......