High Gasoline Prices Signal Economic Trouble for Older Americans
An opinion piece by William D. Larson and Christos A. Makridis argues that rising gasoline prices are disproportionately affecting older Americans due to their historical reference points from the 1970s oil shocks. With West Texas Intermediate futures climbing from $55 to $75 a barrel since early 2025, consumer sentiment is deteriorating rapidly among this demographic. The authors estimate that this sentiment drag could reduce consumer spending by 8% to 12% for older cohorts, compared to only 3% to 5% for younger consumers whose spending habits are less tied to gas prices. The article highlights how psychological memory of past economic crises shapes current spending behavior, potentially impacting the broader economy before any actual income loss occurs.
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High Gasoline Prices Signal Economic Trouble for Older Americans
An opinion piece by William D. Larson and Christos A. Makridis argues that rising gasoline prices are disproportionately affecting older Americans due to their historical reference points from the 1970s oil shocks. With West Texas Intermediate futures climbing from $55 to $75 a barrel since early 2025, consumer sentiment is deteriorating rapidly among this demographic. The authors estimate that this sentiment drag could reduce consumer spending by 8% to 12% for older cohorts, compared to only 3% to 5% for younger consumers whose spending habits are less tied to gas prices. The article highlights how psychological memory of past economic crises shapes current spending behavior, potentially impacting the broader economy before any actual income loss occurs.
WSJ.com: US Business