I think there are two "economic barometers" that we all see every day that impact our decisions about what we spend, where we invest, how we save, etc.

One of those economic barometers is the number of For Sale and Sold signs we see on houses. A lot of For Sale signs tell us that the economy is in trouble.

The other economic barometer we see every day is the price of gasoline and that for many is a key indicator of inflation. It is the fear of inflation that moves many of our "money decisions."

Once again gas prices here in Southern Calfornia are moving towards $4 a gallon. I am stuck using premium gas and I already am seeing $4.09 at some major brand gas stations such as Shell. Arco stations in my area have premium priced between $3.77 and $3.89 a gallon.

What are the prices where you live and do price changes affect your spending decisions? In economics we call it the marginal propensity to consume. In simple English -- is the price of gas going up making you cut back on spending in general and driving in particular?