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Over the past few years gas prices seem to always be in the news. In one week they are exceedingly high and the next they are exceedingly low. This volatility in gas prices is not a positive trend four our country as we are attempting to increase stability and then in turn increase our economic growth. Unfortunately, these bouncing prices leaving the U.S. behind other countries as our growth rate is 2 – 2.5% and not the 5% expected globally. In March gasoline prices rose 10.6% making it more pricey to commute to and from work. This expense eats up any increments in income that may have been experienced for the duration of the past month. Furthermore, it costs companies more to transport their products, send mail, and get supplies. This increase in cost in transportation and resources will again be sent back to the buyer who experiences further income loss for basic necessities. Thus a significant and sustain increase in oil prices has a compounding effect on society and the economy. Heating costs are higher, feed costs which use gasoline in tractors are higher, product costs are higher, the cost of war which uses a large total of fuel goes up, less jobs are produced and things cost more cash throughout the board. The good news is that when checking on the price of feed and costume (basic necessities) it was found that costume costs scaled down more or less while feed rose only slightly. In other words, the higher cost of fuel is not reflected in other product which means it is not yet damping the economy. It may be said, however, that the rise in fuel cost is one of the major subscribers to the rising of inflation and loss of realized income. The more quickly the Country may invent substitute origins of fuel that are both sustainable and cost effective the less reliance on oil. The less reliance on oil the less likely the price of oil will bounce around and affect the economy. A more stable economy means a better prospect of sustained growth in GNP, jobs and investments. |
Rising Gas Price
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