How Have Higher Gas Prices Affected the Economy?
High energy prices will alter themselves, and if they go high enough, the negative effects will flood the stocks and economy.
- Why has there been a rise in gas prices?
"There are several reasons for the jump in gasoline prices - including the possibility of war in the Middle East. There's also the closing of refineries, along with the increased demand for gasoline as summer travel season approaches. Plus the government requires a switch from cheaper winter gas formulations to more expensive summer ones."
- The overwhelmingly high gas prices result from seasonal summers mandated by our Government in order to lower the amount of smog. Cleaner burning gas allows us to breathe easier , but it does cost more than our regular gas.
- The war in Iran has been a major contributor to the rise in gas prices
- When traveling, which is more commonly used, airplane or car?
- "Although private auto transportation still comes out on top, planes are the most popular *public* transport."
Cars are the most popular means of travel and transport used in the United Sates, however, due to an increase in gas prices, people are beginning to question if traveling by car is worth it.
- Have gas prices affected travel?
Not in some cases. Gasoline prices have had less of a negative impact on the economy as have airplane tickets.
This is clearly the minority vote, though. People are generally negatively affected by the increase in gas price.
- The rising numbers in gasoline prices could hurt tourism, restaurants, stores. Therefore, any increase in just about any item can change the spending patterns of families. Families are constantly traveling to school, work, or extracurricular activities, which is taking a hit by the uprising in the price of gas.
- How has the increase in gas prices affected vacations?
Families will be willing to spend the extra money on major attractions that the trip will consist of, however, "side attractions" may suffer by being shortened or eliminated altogether, since the usage of gas will be more expensive and frequent.
- In this case, this man being interviewed about increased gas prices, was unable to visit family within an hour drive, since the gas prices have sky-rocketed. He is a limo driver and has a 600-700 dollar/week gas rate.
What does Obama think?
- Obama says, "We can't afford a situation where speculators artificially manipulate markets by buying up oil, creating the perception of a shortage, and driving prices higher, only to flip the oil for a quick profit."
- 10 ways the government can reduce gas prices.
- High gas prices can potentially lead to obesity.
"As diesel and gasoline prices soar, consumers will pay twice for gas fluctuations. Consumers pay the first time when they gas up to get to the grocery store. Higher gas prices mean that more money is allocated to fuel costs and less to the food budget. The consumers pay for higher gas prices the second time when they purchase food. Trucking companies assess a fuel surcharge to cover their increased transportation expense. This fuel surcharge is passed onto the consumer. So, with less money in the budget, allocated to food and higher prices at the grocery store; consumers have no choice but to purchase processed foods with potentially lower nutritional value."
"If a consumer has 50$ to spend on food, they will not choose fresh produce or lean meats that may only sustain the family for a few days. The consumer will purchase foods that will sustain their family for a week. This may mean boxed noodle dishes and fatty or super-processed meats that are inexpensive, but unhealthy."
However, people may pose the counterargument that using less fuel and walking to the store will help promote good health. This is attainable in large cities where access to services is within walking distance. Consumers living in rural areas do not have the same access to services, and therefore bare a disproportionate burden of gas prices increases.
- Higher gas prices have affected the economy in a negative light. Traveling has become scarce, which has an affect on visiting family. These higher gas prices have resulted from seasonal summer blends and the ongoing Iran war. Also, higher gas prices reduce healthy eating habits. Gas is becoming a necessity that compares well with food consumption, since transportation is now more costly than having a healthy meal.
Obama is attempting to fight gas prices, and there has been a difference within the last week, but who knows? What if the gas prices go up again? Popular vacation spots may not be so engulfed with people. Individuals and families may not be able to visit their loved ones.
This effects my life since I am from Pennsylvania. My family lives there, but I rarely return home because gas and airfare are so high. If gas prices remain high, I will not be able to do or see everything that I would like to. Traveling will be limited, healthy food consumption, and families will be even further apart.
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