Today the New York Times reports on weekly consumer reports conducted by University of Michigan. According to director Richard T. Curtin, many people are suffering from pricey oil–and are changing their spending because of it: just not the rich.
“Cutbacks in spending have been concentrated among households with less than $50,000 in annual income, according to Mr. Curtin’s surveys. That is roughly half of all households. Most of those with incomes above $50,000, which contribute to the bulk of consumer spending, are still managing to absorb the higher energy costs without cutting back much elsewhere. ‘Rising gasoline prices are really driving a wedge between lower- and higher-income households,’ Mr. Curtin said.” —Louis Uchitelle, “Reluctantly adjusting to oil cost,” New York Times, July 20, 2006
Half of us are “cutting back” in spending, that is, doing without. Along with increasing political instability overseas and intensified environmental disruption in oil regions, here is another cost of peak oil: more deprivation and inequity at home.
