Tuesday, May 10, 2011

New Gas Prices Affecting the Economy

Recently, due to various causes, gas prices have risen dramatically. Prices in the United States have gone from a standard 2 and a half dollars a gallon to almost 5 dollars a gallon. Because of this dramatic rise in price, many people are beginning to cut down on spending. For example, people are spending less money on various things in order to save money for gas. Even though saving money is good for the individual, it can be very bad for the economy. Also because of these gas prices, demand for more fuel efficient cars which is putting the SUV business down the toilet. If gas prices continue to rise, I believe that people will attempt to draw from other sources of transportation such as the dart rail way or public buses. It is interesting to see how when one business weakens, another grows strong in its place.

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