Retail store sales drop; big green smelly ogre blamed
Are retail scores mainly scapegoating Shrek? Some financial analysts have said that the effect of rising gas prices have made a dent on the economy. I actually think that it's made much more an impact than we realize. Over the last couple of months, gas has risen pretty steadily, resulting in a net rise of about 30 cents per gallon. 30 cents per gallon doesn't sound like a whole lot, but the cummulated effect is substantial over time. I actually think it is due to gas prices, but not because people have less money -- 2 or 3 more dollars per week isn't going to change buying habits drastically. I believe that gas prices in the long run will remain high (and keep climbing) because until people commuting with their gas guzzling SUVs and solo driving, demand for oil rises. As more nations become industrialized, the need for oil rises, and so until another fuel source becomes utilized, it will remain this way.
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