Did high gas prices hurt the american economy?

Question

Its like a snowball effect.

Answer 1

The price increases in gas affects everything. Food prices and anything else that gets shipped around goes up. Utilities go up. All these companies whose profits are affected by increased costs will still profit though price inceases passed down to the consumer.

The problem is, everyone's trying to cut back and save a buck. Including your employer. So the cost of living is increasing faster than you can earn money to keep up with it. You even have to pay more money to own a hybrid car.

Thanks BUSH!

Answer 2

Yes.

Because our inability to rapidly switch to alternative forms of transportation we have to simply pay the higher price of gas and that increases costs, lowers real incomes, raises retail prices causing inflation.

And inflation is Bad. With inflation the Fed raises its rate causing other rates to increase and those with adjustable rate mortgages are hurt and lose their homes and business invests a little less since interest is a cost of doing business. So there are a few less jobs available and a couple more people out of work who would like to work. But these unemployed people still spend money, and drive, so they buy gas. The snowball continues to roll.

Answer 3

Not as much as you would think... Look at Europe; it's humming along nicely with gasoline prices twice as high as they are in the U.S.

What really hurt the economy in the past was not so much gas prices themselves, but interruptions in supply. Instead of working or enjoying their leisure, people had to spend time in lines at gas stations. Think about it this way. Assume the average worker out there makes $20/hour (or about six gallons of gasoline at current prices). So every hour this average worker wastes in the gas line is a $20 loss to him or her in terms of lost income or lost leisure. That, not gas prices, was the true cost of the energy crisis of the 1970s and 1980s...

Answer 4

Yes...It causes more problems than just owning a vehicle what do you think caused the great deppression inflation the war costed the country so much money that ppl couldn't even survive to live and poverty was everywhere. It is already self evident in America as poverty is on the rise.

Answer 5

tanking the oil over the sea may be plenty much less risky? lol ninety% o china's rivers and lakes are polluted....you may walk in the time of a few lake over the seaweed that has grown too thick because of fact of pollution.

Answer 6

Have a look 1982 prices and compare !!