For the past few months the U.S. has been greatly impacted by the drop in oil prices. Consumers have seen gas prices get lower and lower along with other goods. To most people the decrease in pricing is a good thing, but to those who work for oil companies may be in fear for their jobs. When oil prices are low, companies involved with extracting and producing oil profit less resulting in less income and layoffs. Some officials have estimated around 140,000 Texans alone could be laid off due to the oil prices.
The falling oil prices in relation to layoffs greatly resembles what happened to farmers during the Great Depression. In the 30's many farmers began producing so much crops resulting in surplus. This surplus caused prices to fall drastically, especially when American farmers had to compete internationally during Hoover's administration. Because American farmers were having to sell their goods for less than they were worth many farms went bankrupt.
Source: http://www.cbsnews.com/news/texas-braces-for-massive-layoffs-amid-oil-slump/
Interesting, though cheaper gasoline and oil is always thought to be a positive thing you chose the harmful effects and gave insight into the other perspective.
ReplyDeleteLauren Kuehmeier, Period 2
Cheaper oil prices can be a positive thing. If the price is lowered than it will attract much more consumers than if the oil was at the original price. There is a danger of lowering them too much, however, because then that would generate less profit for the oil companies.
ReplyDeleteI agree with Lauren. I'm glad you shared this article because I was only aware of the benefits that resulted from lower gas prices. I had no idea that people's jobs were at risk because of it.
ReplyDeleteThe risk of such extreme unemployment reflects upon the aftermath of the stock market crash on Oct. 29, 1929 and how unemployment was at its zenith during the era of the Great Depression. Through FDR's New Deal Agencies, many were able to gain employment; however, the job market was far less stable than it had been in a while.
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