Where would we be without low gas prices?

[Potus]

Wages are stagnant, real income has declined in recent years, and each quarter delivers another sign of incoming recession. Things like energy prices declining and other signs of shrinking demand all indicate people are being more frugal in their lives.

The biggest tangible way consumers are "getting a raise" is through the decline in gas prices. If we didn't have this tremendous supply glut, where would we be? What kind of economic implications could rising gas prices have on our likelihood of recession?

My personal feeling is that the decline in gas prices is the largest thing keeping us afloat. Things like food, toilet paper, and other necessary goods have had their prices suppressed by decreased transportation costs. Same goes for more expensive, not-necessary-for-survival goods. This is on top of the increase in take-home pay presented by spending less at the pump.

Where do you think we would be with gas prices closer to the recent average?

[Taco Truck 🚚]

Things like energy prices declining and other signs of shrinking demand all indicate people are being more frugal in their lives.

You think energy prices are going down because of conservation?

[DINGO Joe]

Well, Social Security recipients won't get a COLA increase this year because of oil whereas they would have if gas prices had been higher.  Interestingly enough, West Virginia has the highest percentage of the population collecting SS checks (retirement and disability) at just over 25% so that really hurts them, especially since the state has such a low workforce participation rate to begin with.

Obviously, energy producing states have been hurt by the decline, while consuming states have been helped  Consumers do respond to prices and were more interested in efficiency at higher prices so part of that has evaporated, though longer term trends in efficiency (higher mpg autos and more efficient power generation remain in place).

Lots of cross currents, low energy costs are a benefit to the economy just not a huge one. 

[Donald Trump 2016 !]

Lower energy costs are a huge advantage to our economy. But the falling prices are not due to Americans being frugal and demanding less.

Gas prices are falling for two reasons. Fracking/Natural Gas boom in the US is increasing supply and demand for Gas in Europe and China is slowing due to their slowing economic growth. When the supply of a good increases plus the demand for it decreases, the price of the good declines.

[King]

Economies are a system. Higher energy prices would increase drilling and alternative energy profitability which would stimulate our economy in a different way.

[Ban my account ffs!]

Economies are a system. Higher energy prices would increase drilling and alternative energy profitability which would stimulate our economy in a different way.

But ultimately it would hurt those not invested in energy development, which is most of us because more of the average person's money would be going to pay for energy regardless of where it came from.

Higher energy prices concentrate wealth while lower energy prices give spending power to a larger chunk of the population.