The American people have been told that the high cost of gasoline and fuel will not affect the economy. This of course is utter nonsense however there is something to be said for consumer confidence. Nevertheless, we find many consumers and middle class America getting into debt because the costs to live are more than the people are making. The average consumer is therefore borrowing money on credit cards at very high rates just to maintain their lifestyle. This is very unfortunate, but it seems to be becoming the fact. When fuel prices rise everything that you buy in a store costs a little bit more, because everything you buy into store had to come there by truck or train and both of those use lots of fuel. When the average consumer pays more for gasoline they do less traveling and they opted for less elective spending. When prices go up on everything in the store people can buy it less items and this means less items need to be produced and therefore less people need to be employed making those items. All of this has serious repercussions for not only the economy of the United States of America but also world economies and all those places where things are manufactured. This could cause an incredible pickup in world economics, which will indeed affect even those Middle Eastern countries, which produced the oil. At three dollars per gallon it has a very negative affect on our economy and our GDP. Please consider this in 2006. |
