AP News, February 1st, 2008
It's 1974 and you're almost out of gas. Thanks to the oil crisis, a fill-up will be expensive, and might involve waiting in line — but at least those government gas rationing coupons haven't gone into effect.
Whether or not you have memories of this chapter in American history, you might be curious to know what these 4.8 billion coupons were all about — and what ever happened to them all. That curiosity inspired one of five reader-submitted questions being answered in this installment of "Ask AP," an interactive Q&A column where AP journalists respond to questions about the news.
If you have your own news-related question that you'd like to see answered by an AP reporter or editor, send it to newsquestions@ap.org, with "Ask AP" in the subject line.
What can a person or family do to help stimulate the economy and avoid a recession? That is, if we weren't getting checks and someone had the idea of just TELLING the American people how they can help, what would they say?
For starters, think about a poster on every street corner that reads, "Uncle Sam wants you to ... spend, spend, spend."
The fact is, fear of a recession can lead to behavior that causes a recession.
When times are uncertain, consumers and businesses become reluctant to spend their money. So, for example, companies don't build new factories or hire new employees if they're not sure they'll be able to maintain production. And consumers don't invest in a new car or TV if they're unsure they'll have a job in three months.
On the other hand, if consumers keep spending, it has a cascade effect. The consumer's money goes to the retailer, which pays its workers as well as its wholesalers; the wholesalers, in turn, pay their workers and their manufacturers; and so on down the line.
The problem, of course, is that what's good for the economy may not be good for an individual's pocketbook. Spending without regard to the security of your job — or the amount of savings and debt you've got — could be hazardous to your personal finances.
What happened to the gas rationing coupons printed the 1970s?
In response to the Arab oil embargo that began in October 1973, the idea was hatched to limit gas consumption by distributing coupons that drivers would need to present whenever they went to fill up their cars. The plan was to let most drivers have 32 to 35 gallons of gas a month.
(Rising gas prices, apparently, weren't enough to limit consumption. The average price for a gallon of gas went up from 38.7 cents before the embargo to 54.2 cents a year later — in today's dollars, that's a jump from $1.81 to $2.28.)
The 4.8 billion coupons, created in 1974, were never distributed. Ten years later, most were shredded and buried by the Department of Energy at an estimated cost of $145,000.
At least two sheets of the coupons were saved for the National Archives and the Smithsonian. And few other coupons managed to avoid the shredder — one is among the items on display in an ongoing exhibit on the 1973 oil crisis at the Canadian Centre for Architecture in Montreal. The museum says the coupon was bought on eBay for $95.
What is considered to be an acceptable unemployment figure for a stable economy? I seem to remember from economics classes years ago that it should be around 4.5 percent to 5 percent to avoid major fluctuations in the economy. Is that true?
Economists say a nationwide unemployment rate between 4.5 percent and — depending on whom you ask — 4.75 percent or 5 percent is generally consistent with a good jobs market and solid wage growth for workers.
The December unemployment rate — 5 percent — is at the outside edge of this range. But investors, the Federal Reserve and economists were rattled by the big jump from November's 4.7 percent. It was the biggest one-month gain since October 2001, when there were massive layoffs in the travel industry after the Sept. 11 attacks.
In the past, a sharp rise in the unemployment rate has indicated a recession was starting or under way.
Could I get an update on the guy who disappeared flying his plane in or near Nevada?
An exhaustive search has found no sign of 63-year-old adventurer Steve Fossett, who disappeared while on a pleasure flight in a light plane last September in Nevada.
Now, snow blankets much of the area where his plane may have gone down. As weather permits, volunteer search efforts are expected to resume. The state plans to send out searchers if new leads develop.
In late November, Fossett's wife, Peggy, requested a court order declaring her husband dead so she can transfer his estate into a trust. A judge considering the case in Chicago has yet to make a ruling.
Fossett, renowned for his around-the-world balloon flights and other colorful exploits, made millions of dollars trading futures and options on Chicago exchanges.
Carson City, Nev., Correspondent
