# Would $3.00/gallon Gasoline Cause a Depression in the USA? **URL:** \ **Category:** Great Debates\ **Created:** [March 23, 2004, 9:50pm UTC](https://boards.straightdope.com/t/would-3-00-gallon-gasoline-cause-a-depression-in-the-usa/235995 "2004-03-23T21:50:22Z")\ **Posts on this page:** 6\ **Page:** 2
**Author:** ![ccwaterback](https://avatars.discourse-cdn.com/v4/letter/c/df705f/32.png) [@ccwaterback](https://boards.straightdope.com/u/ccwaterback)\ **Post date:** [March 25, 2004, 2:40am UTC](https://boards.straightdope.com/t/would-3-00-gallon-gasoline-cause-a-depression-in-the-usa/235995/21 "2004-03-25T02:40:44Z")
Why worry about the price of gasoline? It’s making some fat-cats in Texas very rich. Notice how the White House is not concerned? ---
**Author:** ![Martin\_Hyde](https://avatars.discourse-cdn.com/v4/letter/m/47e85d/32.png) [@Martin\_Hyde](https://boards.straightdope.com/u/Martin_Hyde)\ **Post date:** [March 25, 2004, 2:48am UTC](https://boards.straightdope.com/t/would-3-00-gallon-gasoline-cause-a-depression-in-the-usa/235995/22 "2004-03-25T02:48:02Z")
> [@sghoul](#): > > The biggest people hit will be the people in the gass guzzlers (SUV’s, sports cars, high performance anything). The people tend to have more money anyway, so it wouldn’t start a depression. > > Besides, it may get people to carpool more, and/or walk/bike/mass transport more as well. American culture it to dependant on automobiles and gas. As the same time, we are horrible about using economical vehicles. Something like this might be the kick in the pants we need to quit being such greedy wastefull bastards. Tell me how people that don’t live in major metropolitan areas are going to get around without a private automobile and your idea might have some merit. I know I could not get to work via public transportation here. There are certainly no bus lines or any other type of mass transit available. ---
**Author:** ![clayton\_e](https://avatars.discourse-cdn.com/v4/letter/c/c57346/32.png) [@clayton\_e](https://boards.straightdope.com/u/clayton_e)\ **Post date:** [March 25, 2004, 8:23am UTC](https://boards.straightdope.com/t/would-3-00-gallon-gasoline-cause-a-depression-in-the-usa/235995/23 "2004-03-25T08:23:34Z")
> [@ccwaterback](#): > > Why worry about the price of gasoline? It’s making some fat-cats in Texas very rich. Notice how the White House is not concerned? 😕 um… I’d worry if I had a high consumption vehicle. Even if I didn’t, a few more dollars at the pump is a few less dollars I’ll have later on. And the White House is EXTREMELY concerned. We did kinda start a war with that being brought up by some as being a potential motivation and we have been extensively involved in middle eastern politics relating to the trade of oil. Dick Cheney has questionable [motives](http://www.corpwatch.org/issues/PID.jsp?articleid=2471) and Bush himself is good friends with many of those Texas oil executives (he was, after all, their gov). I don’t see where you’re getting that the White House isn’t concerned. ---
**Author:** ![JohnBckWLD](https://avatars.discourse-cdn.com/v4/letter/j/d6d6ee/32.png) [@JohnBckWLD](https://boards.straightdope.com/u/JohnBckWLD)\ **Post date:** [March 25, 2004, 9:18pm UTC](https://boards.straightdope.com/t/would-3-00-gallon-gasoline-cause-a-depression-in-the-usa/235995/24 "2004-03-25T21:18:06Z")
> [@ITR champion](#): > > A depression with 15 percent unemployment? I doubt it. A rise in oil prices that large would cause some problems, to be sure, but it’s not like we have a lot of industries that are teetering right on the brink of disaster right now. We could survive a supply-side shock without too many ill effects. In 1974, inflation was already at about five percent when the shock came, and that’s what sent it spiraling upward so fast. Current inflation is around two percent, so a hit from the oil department might push it up to around six percent. Painful, yes, but the economy can survive that. I’m a little more concrened about the inflation =\> stagflation aspect. With the near extinction of commercial rail carriers, more and more domestic goods are shipped via truck. As freight carriers start increasing rates and adding fuel surcharges - the landed cost of goods increases - all of which in turn are marked up by resellers and retailers. With the continued over-valuation in the real estate market & inflationary pressures on finished goods - we can expect to see a spiking in interest rates. What affect any or all of this will have on the future economy is anyone’s guess. Whether you’re a democrat or republican: Look for the Bush administration to attempt to make political hay out of Kerry’s opposition to ANWAR & his past support of a 50 cent a gallon federal tax on gasoline. Kerry will probably counter with the Mobil/Exxon merger getting a blessing from an administration too closely tied to the oil industry. ---
**Author:** ![GorillaMan](https://avatars.discourse-cdn.com/v4/letter/g/50afbb/32.png) [@GorillaMan](https://boards.straightdope.com/u/GorillaMan)\ **Post date:** [March 25, 2004, 9:26pm UTC](https://boards.straightdope.com/t/would-3-00-gallon-gasoline-cause-a-depression-in-the-usa/235995/25 "2004-03-25T21:26:27Z")
> [@toadspittle](#): > > People still use leaded fuel? Don’t you folks have scientists over there? 😕 I hope (for **Bromley** ’s sake 😉 ) that this was a slip, and he meant to say unleaded. No we don’t have leaded fuel anymore. > [@mornea](#): > > This is a good idea for people who have good mass transport systems available to them. But you also have to keep in mind that fares would definitely increase… Why? The cost of fuel is only one small part of public transport costs, and in any case an increase in passengers would create extra revenue. ---
**Author:** ![Spectre\_of\_Pithecanthropus](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/spectre_of_pithecanthropus/32/12343_2.png) [@Spectre\_of\_Pithecanthropus](https://boards.straightdope.com/u/Spectre_of_Pithecanthropus)\ **Post date:** [March 25, 2004, 10:59pm UTC](https://boards.straightdope.com/t/would-3-00-gallon-gasoline-cause-a-depression-in-the-usa/235995/26 "2004-03-25T22:59:57Z")
> [@JohnBckWLD](#): > > With the near extinction of commercial rail carriers, more and more domestic goods are shipped via truck. . I don’t think freight railroading is quite dead yet. At least until the current recession, I heard they were having banner years. But you’re right about there being more truck traffic, and more of the local traffic is moving to trucks. Especially in the L.A. area, I’ve noticed that many miles of local track, that used to permit rail traffic from central railyards, and the port, to many areas within the city, are now gone, with the rights of way given over to parking lots, warehouses, and other small businesses. Speaking of petrochemicals, I wonder what portion goes to all those plastic bottles, especially of soft drinks, that used to be glass? [Previous page](https://boards.straightdope.com/t/would-3-00-gallon-gasoline-cause-a-depression-in-the-usa/235995.md?page=1)