1
2
3
4
5

Highs & Lows

With gas prices the lowest we have seen in years there are bound to be some effects right? Absolutely right! And those effects are good and bad depending on how you look at them. Here are some highs & lows of these fluctuating prices.

 

Highs

 

Middle & Lower Class Benefit

Any break in everyday needs, anywhere is a help to these people. It gives us ( I am middle class and I am assuming you might be too! ) just a little bit more freedom to spend our money on other things.

 

Lower Inflation

With gas & oil prices this low, it causes a dramatic slow in inflation. It makes just about everything cheaper. That is a big boost to consumers.

 

Saving Money

When we are not spending it, we are trying to save at least a little, right? You save if you can, but with the lower inflation, You will be able to save even more. You might be able to pay off your debt or buy that new house sooner than you thought if prices stay like this.

 

Cheap Flights

This is not just affecting the U.S., it is global! International air travel travel is already 15 percent cheaper than it was last year. If you are staying here you can travel from state to almost any other state for $40 one way.

 

Lows

 

Regional Economic disruptions

While in the bigger picture people are really benefitting, when you get down to ground level some areas are really hurting. Those areas that produced all this oil, that were booming a year ago, are halted. Once the surplus dies down these areas will see a pick up.

 

Russia

Not all countries have as a diverse of an economy as we do. If one part, for example oil, takes a downturn we can recover and most of us won’t feel any long lastings effects. However if you are like Russia and most of your economy runs on oil and you are not the highest producer/seller things can go bad. Russia might become more aggressive due to these low oil prices.

 

Wall Street

After a year of solid gains and relative stability, the sharp declines in oil prices are sending shock waves down Wall Street. With all the ups and downs it scares people away from investing. Also it is hurting those heavily invested in energy because of the decline.

 

Energy Efficiency

While as a whole the country and the world is becoming more energy efficient, however if oil is cheap people are going to buy it. That hurts the strides to go away from fossil fuels, a low price is a hard thing to say no to.

 

Add new comment