Weekend Economists Be Mother May 8-10, 2015

[Demeter]

13. Is This Why People Aren't Spending Their Gas Windfall? FROM FORBES

THE ELITE SIMPLY CAN'T UNDERSTAND WHY WE AREN'T MAXING OUT CREDIT CARDS...WHILE THE ORDINARY PERSON ASKS: "WHAT WINDFALL?"

...More than two thirds of consumers say they’ve used their gas windfall to pad their savings account or pay down debt, according to Visa, while only 30% say they’ve spent it.

Why? Perhaps because they aren’t sure cheap gas will last.

“What drives consumer spending are expectations of future gas prices, not prices today,” says Visa’s chief economist Wayne Best.

Gas prices have certainly ticked up this year, with the average cost of a gallon of gas hovering around $2.66 now, above its January low of $2.09. Perhaps unsurprisingly, some 70% of people expect gas prices to rise over the next three months, says Visa.

This has impacted the way people are treating the extra jangle in their wallets....

AND THERE'S THE FACT THAT IT DOESN'T AMOUNT TO ANYTHING LIKE REAL MONEY...JANGLE, INDEED!