Rising gas prices may take a big chunk of your rebate check

[lamebums]

Gas bills ate your rebate

Steve Hargreaves - CNNMoney.com - March 14, 2008

Honey, the Hummer ate the tax rebate! - Ed.

Rising gasoline prices means that up to a third of your stimulus rebate check - designed to boost the U.S. economy through spending at stores, restaurants and other businesses - could be spent buying gasoline, most of which is imported from abroad.

"The rebate goes into the tank, and then finds its way into economies far from our own," said Jared Bernstein, a senior economist at the Economic Policy Institute, a liberal think tank.

In a move to avoid a recession, the federal government is sending over $100 billion in checks to most taxpayers across the nation. The checks should arrive as early as May.

Middle income individuals with no dependents should get about $600. A middle income family of four will get about $1670, according to the Treasury Department.

Gas prices are projected to jump 40 cents a gallon on average this year according to the U.S. Energy Information Administration. In 2007, the average driver consumed 578 gallons of gas per vehicle, according to the Federal Highway Administration.

So if gasoline consumption holds steady, it could cost $231 more to fuel a car in 2008.… [Read More]

[worthywads]

I took a quick look at my Tacomas average fuel usage, I've averaged a gallon a day (.992) over 2.5 years.

My wifes Element has averaged about 1 gallon as well (1.065) over 3.5 years.

Assuming the $.40 increase expected from the article my increased gas spending is lookin' ta be $146 each vehicle or $292 combined.

What's left just about pays for the CAT scan and colonoscopy I just had because of intestinal pains. My rebate's going toward a good ROI on some medical diagnostic equipment.

[Earthling]

@ 50 mpg, and living half a mile from where I work, rising gas prices won't even be a blip on my radar screen.

Harry

[basjoos]

Originally Posted by Earthling

@ 50 mpg, and living half a mile from where I work, rising gas prices won't even be a blip on my radar screen.

Harry

Even though you may not see them directly in the form of gas purchases, you'll see the effects of rising gas prices in the form of higher prices on just about everything you buy.

[xcel]

Hi Basjoos:

Originally Posted by basjoos

Even though you may not see them directly in the form of gas purchases, you'll see the effects of rising gas prices in the form of higher prices on just about everything you buy.

___So true and well said!

___Good Luck

___Wayne

[brick]

I agree, it's not gas specifically that I'm worried about. It's everything else getting more expensive while the economy in general heads for the toilet due to energy costs.

[lamebums]

Originally Posted by brick

I agree, it's not gas specifically that I'm worried about. It's everything else getting more expensive while the economy in general heads for the toilet due to energy costs.

Hence the Fed's problem--they cut the rates in an attempt to increase spending and credit and loans, etc. However, that also increases the money supply, driving up inflation. That lowers the value of the dollar, and makes oil even more expensive, putting more pressure on the economy, which brings the Fed back to square one, except now gas is $5 a gallon instead of $3 (and wages haven't changed).