Gasoline prices around the United States are being cut at enormous rates. Two weeks ago, the average price of gas in the entire country was $2.50 , now, just a few weeks later, 13 States have prices under $2.00, with Oklahoma leading as being the first State to have that title. These prices have been driven by plummeting crude oil prices, though OPEC says it isn't concerned. These prices are due to the falling demand of oil due to economic slowdown in South Asia, more fuel efficient vehicles, and a large production, though the strength of the dollar doesn't hurt either.
During these times of low prices there has many similarities compared to the early 20th Century to current day. For example when the US is ever driven by a war economy, we begin to increase our war production and generate stockpiles. This leads to a very low demand, and creates a drop in prices. These reactions create a stable government and positive economic growth. But, never last long periods of time.
http://www.csmonitor.com/Environment/2014/1215/Gas-at-2-a-gallon-States-revel-in-low-gas-prices
Hopefully this one will last a little bit longer and not be true to the war economy standard.
ReplyDelete- Hannah Kalan 6th period
It's amazing how the economy can change so drastically. This is such a huge difference in a good way compared to the Great Depression.
ReplyDeleteThe change in price seems good for us the consumers, but for the companies, it means that they have to lay off some of their workers to compensate for loss of sales.
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