Paying more at the pump means Oklahomans will have less money available to spend on consumer goods, which will have a negative effect on money flowing into the state's coffers, state treasurer says.
BY MICHAEL MCNUTT mmcnutt@opubco.com, Oklahoman
Published: May 4, 2011
Continued high fuel prices could put the brakes on Oklahoma's slow but steady economic recovery, state Treasurer Ken Miller warned Tuesday.
“If gas prices continue to stay high or go even higher as one might expect in the summer months, then that's got to have an effect on consumption and our sales tax collections,” Miller said. “You can't get blood out of a turnip and there's only so much disposable income that families are going to have.
“That is a potential threat to the economy,” Miller said.
“We have to remember that it is our families and our households that really draft consumer spending,” he said. “Two-thirds of our economy is built on consumer spending. When they have to redirect such a large amount of their disposable income to gas purchases, then that will take money away from purchasing everything else and that could certainly threaten to pause our strong recovery that we're experiencing right now.” FULL ARTICLE
Posted on
Wed, May 4, 2011
by John Cox