Comments on: Why did the US economy continued to perform well despite the higher oil price and katrina disaster? http://homebusinessmegaphone.com/us-economy/why-did-the-us-economy-continued-to-perform-well-despite-the-higher-oil-price-and-katrina-disaster/ A Better Path for the US Economy. Thu, 20 Nov 2008 16:25:14 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: Tim B http://homebusinessmegaphone.com/us-economy/why-did-the-us-economy-continued-to-perform-well-despite-the-higher-oil-price-and-katrina-disaster/comment-page-1/#comment-67 Tim B Mon, 03 Mar 2008 04:28:27 +0000 http://homebusinessmegaphone.com/us-economy/why-did-the-us-economy-continued-to-perform-well-despite-the-higher-oil-price-and-katrina-disaster/#comment-67 Higher oil prices means the US population has to decrease savings and pay more for gasoline and / or; Borrow more money on credit to pay for gasoline. Problem is neither is long term sustainable... savings get used up, and credit eventually runs out when borrowers default... Next thing you know consumers will be screaming for higher wages.. therefore wage inflation. Does this help any? Higher oil prices means the US population has to decrease savings and pay more for gasoline and / or;

Borrow more money on credit to pay for gasoline.

Problem is neither is long term sustainable… savings get used up, and credit eventually runs out when borrowers default…

Next thing you know consumers will be screaming for higher wages.. therefore wage inflation.

Does this help any?

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