Gas Gap: Americans at the Pump
“Poverty is like punishment for a crime you didn’t commit.” — Eli Khamarov
TIME recently reported that, “Energy costs have risen 31% at an annual rate so far in 2006. That ripples through the rest of the economy, showing up as fuel surcharges on services like airline tickets (up 7.9% so far this year) and higher prices on pretty much anything that travels before reaching the store.”
The same goes for employees trying to reach work. Joseph Godina, a truck driver with a long commute (a workday round-trip of 200 miles) in the Los Angeles area was interviewed for an article in the LA Times on Sunday entitled being Pinched at the Pump. He says, “The gas is just really hurting me. I don’t know what to do. I can’t quit my job or I’d lose my house.” He put a call into Visa to check his available credit before filling up. He has already maxed out his gas cards.
Elizabeth Douglass interviewed him and others being impacted by the high gas prices. Many of these people were barely getting by before and now they are falling further behind. She writes, “The wallop is worsened by interest rates that are at their highest levels in more than five years, boosting adjustable rate mortgages and credit card bills and jacking up the minimum payments on most credit cards.”
Back to TIME’s tutorial on inflation… “The Fed raised its benchmark rate by a quarter point last month, the 17th straight increase, in its effort to gently brake the economy by reining in spending.” Are consumers hoarding money just to pay for gas??
Ask Godina. “As his plight illustrates, the fiscal fallout already is showing up at the lower end of the wage scale. And anecdotal evidence suggests that high gasoline costs are forcing people to make adjustments at nearly all income levels.”
“A recent survey for the National Retail Federation found that 42% of households with incomes of less than $50,000 were dining out less than frequently because of high gas prices and the 33% with higher incomes had cut back on eating at restaurants.”
“Gasoline prices are clearly taking a bite out of the consumer, especially among people who are at the margin.”
The margin… hmmm… another name for the population that is Nickel and Dimed. The gap continues to expand between the rich and the poor in this country. Gas prices aren’t really impacting the rich. The middle class feels the pinch, but most of us are just adjusting expenses. An increase in one column is covered by cutting back in another. The poor are just getting screwed. It’s sad really. I’m not sure what the answer is to the problem. It’s just front and center on my mind after reading about it.
It sounds bad of me to say this, but I think I’m one of the middle to upper class folks that isn’t complaining about gas prices. I think folks who are complaining have serious other financial problems if they can’t absorb the cost of 1 or 2 tanks of gas per month. That’s very troubling for us as a nation.
I read Nickel and Dimed, at times it was really tedious, but it was definitely illuminating and scary and I’d recommend it to anyone. The one thing I felt sure of though is that if I ever get laid off, I could find work housecleaning or waiting tables if I really needed it. I should not be a snob and take money doing honest work. So many folks think they are above manual labor and I think that’s a bad attitude to have about the masses who make our country go with the small things they do, driving trucks, cooking meals, cleaning up.
Another book you might like is Andrew Hacker’s MONEY. It’s very old now, but I loved the stats he uses to show the widening gap between rich and poor. I bet if you read the bibliography of Nickel and Dimed, his book is there.
Sorry, Nina. I have no answers. Only more statistics. I know there are living wage proponents around the country who say that’s the best thing to do, but I don’t know. I guess the main thing is to get people to save, even if it’s small amounts.
I agree with you MapGirl.
My partner MsMom and I have made huge lifestyle changes this year- she quit her job to be a stay at home mom. We have 3 kids and are getting by on my $50K/yr. We are among the lucky middle class who are not as affected by the gas prices. We have days go by without starting up a car- she walks the kids everywhere & I can easily take the bus to work. We have made sacrifices that are probably for the better anyways- she quit smoking- I quit my massive coffee & soda/caffeine addiction. I read some of the articles here about whether or not a second home is a good idea and I laugh! I guess I’m at the point where more of the hetero/family type sites almost have more pertinence in my life now- then there will be a great article or even a paragraph in a story here to keep me coming back.
My family could very easily become a bankruptcy statistic- but we budget, save, scrounge, plan ahead, garden, garbage pick, and do every damn frugal thing we can to live this life we have- all the while hopefully teaching our kids how to be resourceful. But even with all this in my own life- I know how much time and effort it takes to be this way- to not just charge any old thing up when you feel like retail therapy– and I know those who make less per annum than I working more hours than I- and maybe not having as wonderful a life partner as I- could never do all the things we do.
The article in Mother Jones this past month that outlined the differences betweens the haves and have nots clearly proves this gas gap is going to take massive tolls on our nation. I recommend it highly to anyone who sees this gap widening and wants the stats to see the proof.
I hear ya’ on the gas prices…”need to get gas” has become a four letter word in our house of 2 commuters (100+ miles) each day for each of us…
thank you for mentioning nickel and dimed…i read it a few years ago and recommend it whenever i can to people i meet…excellent read…sad but true…
As a single parent who is in a transitional time in my career (working a fixed contract ~ job searching in a competative field) I *have to* drive to my job. I don’t want to disrupt my son so I can’t sell the house and move(especially when the contract ends 12/06). My current goal is to save all the $$ I can until I find permanent employment, feels pretty tenuous but I know I’m luckier than most! My car is not worth selling to find a better car(more expense) and 36 mpg is pretty good. I’m not sure what better options there are and I’ve heard next year it might be $4/gal!