How Gas Prices Affect Our Economy

In recent years, gas prices always seem to be in the news. In one week, they are extremely high, and the next they are extremely low. This volatility of gas prices is not a positive development of our country's four, as we try to increase stability and increase again to our economic growth. Unfortunately, these prices are expected to jumping with the U.S. behind other countries around the world as our growth rate of 2 to 2.5% and 5%.

In March, gasoline prices rose by 10.6% toit more expensive to commute to and from work. These costs swallows, an increase in income may have been experienced in the past month. In addition, it costs more to send companies to transport their products to be able to, and get supplies. This increase in transport costs and the resources are again sent back to the consumer, the further loss of income for basic needs experience.

Thus, a substantial and sustained increase in oil prices has a compounding impact on society and theEconomy. Heating costs are higher, food costs, gasoline tractors higher use, product cost is higher, the cost of the war that uses lots of fuel increases, fewer jobs are produced and things cost more money down the line.

The good news is that was) in checking on the price of food and clothing (basic needs found that clothing costs slightly decreased, while food rose only slightly. In other words, the higher cost of fuel that is not reflected in other product areas, it meansis not dampening the economy. However, it can be said that the rise in fuel costs, one of the major contributors is to realize the rising inflation and the loss of income.

The sooner the country can develop alternative fuels, both sustainable and cost less dependence on oil. The less dependence on oil, the less likely the oil price jumps around and the impact on the economy. A stable economy means a better chance of sustained growth in GNP, employment andInvestment.