Sunday, March 18, 2012
No Relief in Sight at Pump
Oil, one of the natural resource that run the economy. as the price rises higher and higher in the near future, will we see another sluggish economy? This is becoming one of the main factors in the presidential campaign, and I feel like, this economy is becoming more and more socialist.
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Oil is really important to our economy because it is a very important compenent for energy and transporation. With the rise in oil prices, firms may start to decrease the amount of employees they hire, causing an increase in unemployment rate. This could cause the economy to slow down. I do not if I necessary agree with the economy becoming more socialist. I think we need to figure out a way of using different sources of energy or find more oil. We need to change our current ways from being so depenedent on oil.
Rise in oil prices do obviously raise price of products due to shipping cost going up. However, the biggest concern I have with rising gas prices is inflation rates. When a commodity like gas goes up in price, the value of the dollar goes down.
The conflicts with Iran causing some of the price increases are not predicted to resolve soon. However, governments around the world have been working hard developing alternative energy sources and now may be the time to pull ahead with those ideas. The current conflict could be the push needed to raise the awareness and interest needed to push these ideas forward. As seen at the conference a couple weeks ago, there are many possibilities available just in the US.
I have personally witnessed the effect of gas price increases. At my job, the owner recently raised all the prices specifically blaming gas prices. Therefore, if prices continue to rise there will have to be wage increases or our economy will greatly suffer.
The next step that the government should take is promoting ways to make our oil more efficient for energy usage and less oil to be used. To me, this is not socialist but, instead, is a way to promote capitalism in cities. With effective transportation, companies can be established and grow, thus bringing money back into the government.
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