Tuesday, January 26, 2016

Low Gas Prices Are Not Good for Everyone

Sure, it's good that gas prices are low, especially if you have to drive to work every day or you are planning a driving vacation. It's true, also, that eventually, low gas prices should drive down other prices because of the lower cost of transportation. (Isn't that what they told us when food and other things got so expensive when gas prices went high?)

So, what's the kick?

Small oil companies have already gone under. Large oil companies are cutting back and laying off people - again.

Manufacturers, distributors and all the supporting services that oil companies require... what happens to them?

A lot of people are (were) employed by the oil business in the US, either directly or indirectly. A lot of people who were employed bought houses. They bought cars and trucks and clothing. They ate out, went to concerts and ball games. Money kept changing hands because it was there to change.

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