Value Microcaps Motherboard

[gilead23]

"Ok, here's something that struck me while reading the article. Somehow money diverted to gasoline purchases is considered a hidden tax that reduces other consumer spending. Why is an appreciating price for energy different than consumers spending the money on any other consumable?"

I don't think the aggregate effect of increased prices in the US centered portion of that production is a drain it just shifts who is spending the money in the US.

It seems pretty clear though that if we are paying more for oil from overseas that there is less money to spend on any other good or service. The money spent on foreign oil is no longer available for US consumers to spend on stuff made in the US.
That has to be a drain to some extent.

I don't buy the idea though that 2.00 gas will destroy the economy as some might suggest. Adjusted for inflation our current prices are not all that high unless you are comparing to prices in the 90's. The US economy has grown nicely in the past with similar oil/gas prices.