Clifford Krauss' article "For Labor Day Drivers, Lowest Gasoline Prices in 11 Years" was published on September 4, 2015 by the New York Times. As many drivers might have noticed, gas prices have been decreasing steadily since last summer. In fact, this is the lowest they have been in eleven years. This is mostly because OPEC, or the Organization of Petroleum Exporting Countries, decided not to reduce exports last December, causing prices to drop rapidly. But experts warn that this drop in price is not long term. They could change in a instant because disputes, which are frequent in the Middle East, usually cause dramatic spikes in oil prices. Additionally, this price drop could indicate a slow down in the global economy. This is because of China. In China, a drop in oil sales causes a train reaction that has economic consequences in all fields. And since China has economic ties to almost every country, this could be really bad news.
This article highlights why too much of a good thing can be a bad thing. While low gas prices are great for consumers, giving them extra money to spend on other things, it is bad news for the global economy. It may even cause a recession. This event relates to the Great Depression in American History. The American economy had a great boost during World War I due to the need for supplies in Europe. Afterwards, however, it declined rapidly, and it took years to recover. It was a very dark period in this nation's history. If people are not careful, the United States could experience something like that again.
http://www.nytimes.com/2015/09/05/business/energy-environment/shrugging-off-market-turmoil-gas-prices-extend-slide.html?ref=business&_r=0
We are really playing with fire by continuing to use Gasoline, an nonrenewable resource as our main source of fuel. Thankfully, the past few years has seen a push in electric cars but most of them aren't affordable or as up to par as a regular car. This article mentioned how cheaper gas is going to motivate people to drive more than usual which is terrible since even more gas usage will make this situation worse.
ReplyDeleteThat's very alarming to see how it could possibly cause a recession. This article shows us that even though something may seem good right now, in the grand scheme of things it may not be the best thing. I really think we ought to be mindful that people are going to inhabit the earth after we are long gone, and that it would be polite and wise to take care of it now as best as we can.
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