Monday, September 14, 2015

Gas Prices and the Economy

I'm sure you've noticed gas prices at the pump, going down and down. According to Bankrate, "The lowest prices may still be on the horizon."

Good news, right? In the short term, yes. It costs less to fill your tank when prices are so low. In the long term, the picture may not be so bright, however. 
The fact is that gas prices are tied to the overall economy of our nation and when they go down this far, companies lose their profits, causing workers lose their jobs, causing retailers lose sales, causing more workers to lose their jobs... When enough workers lose their jobs, it affects the housing market negatively and it affects savings rates and retail sales, all of which have powerful effects on the overall economy. 
Just in case you wanted to be happy about saving money at the gas pump... really, I don't like to be negative about everything, so enjoy your savings. But remember that one person's gain is another person's loss and be ready for it to boomerang. We're all in this together. 

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