Perki

How Low Can Gasoline Prices Go?

Probably the fastest boost to consumer spending comes from gas price reductions. US sales of gasoline are about 9 ml bbls per day. Every dollar of gas price reduction puts $11.3 billion dollars per month in disposable income directly and instantly in the hands of the consumers --tax free!

So a $3 per gallon reduction in gasoline pump prices is a $34 bln monthly increase in disposable income. Doesn't sound like much but the billions spent on brokerage firm and bank rescues have resulted in almost NO EFFECT on disposable funds at the consumer level.