Today: How Are High Gas Prices Affecting the Poor?

How are the high prices affecting them?

High gas prices are most definitely affecting poor people. Bus fares have gone up as a result of the gas prices, and the cost of getting to and from work, school and other places are higher for poor people who own and drive cars. Poor people have fewer options than middle class and wealthy people when gas prices are affected like this. They usually work in neighborhoods that are not poor, and therefore not where they live, so it’s harder for poor people to get to work and to stay employed when their cost of getting to work is affected. They have fewer work options, as many of them can’t afford technological tools that increase their ability to get more work, making them more reliant on showing up rather than telecommuting.

Are they changing their habits at all (i.e., taking public transportation, shopping at different gas stations to save money)?

Habits may be changing among the poor, as a result of gas price increases, but we haven’t seen the worst yet. Gas prices are still in flux, even though they are on a price increase overall. When the price of gasoline hits $5/gallon, the reality that gas prices are not going to go back down is going to set in in a way that it hasn’t yet.

At that point, there is going to be more of a disparity between the poor and the middle class and wealthy. Poor people will not be as able to leave their neighborhoods, and this will increase the differences between the haves and the have nots. The psychological pressure will create a negative affect on crime, family dynamics and relationship dynamics within poor neighborhoods, as a result of these rising gas prices and their wide spreading effects, eventually.

Are they changing the type of vehicles they drive?

No. Not yet. The poor can’t afford hybrids. Hybrids are not really on the used car market yet, and the cheapest new one is about $20,000 which is a lot for a poor family who relies on used cars that cost $1,000 or $2,000, of which there are still many available.

Can they afford hybrids?

No way. Not yet.