Drop in Gas Prices - Stimulus Package

The drop in gas prices provides a huge stimulus package to the economy. Below is the math based upon the price of gas dropping from $4/gallon to $1.50/gallon.

Using that an average car driver drives 15,000 miles a year and a vehicle gets 25 miles per gallon then each car uses 600 gallons each year. Each car saves $2.50 per gallon on 600 gallons each year or roughly $1500 per year or $120/month. Using 150 millon cars in our country this equates to $18 Billion per month or $200 Billion per year.

In the news, we hear how bad things are and how the drop in oil and gas prices represents bad things. My wallet tells me that when I fill my gas tank that I feel better. It is ok with me if the price of gas stays down for a long time.