"Two thousand and seven was the year of the “R word” — recession. How many times did you hear a network reporter drone on about how high gas prices are about to “hit the consumer,” predicting that retail sales must eventually drop in response to $3 gas? If you watch network TV, the answer is quite a lot. But weeks, months, and quarters went by and strong consumer-spending habits showed little sign of abating. Meanwhile, gas prices have held near historical highs. We got to the end of a whole year of high gas prices and the consumer never quit and the economy never went into recession.
The recessionistas have been disproved, although they’ll never be discouraged. They will continue their dirge starting, well, today. Through 2008 they will ask, “When will high gas prices kill the consumer?” And the answer will remain the same: never..." - My pal Jerry Bowyer on gas prices and consumer spending ("Gas Bags") over at NRO.