Sunday, September 25, 2011

Gas and the Economy

This article is great. It talks about how the lower gas prices are helping put cash back in the hands of consumers. This is what our economy needs, the consumers getting more money. They are getting money through price drops which helps them spend that money else where and consume more. Now, I agree this is not a fix for the economy but maybe it will be a spark that consumers need to help regain their confidence. I also like this idea because the change in gas prices isn't something the government controlled or something people tried to manipulate it is a "natural" occurrence. Now the article also talks about how people expect prices to jump back up but that's the long run and with our economy it seem like all economists are only worrying about the short run anyway. This helps us in a short run. Consumers are getting cash in their hands, some will spend it and some will save it, but either way it goes back into our economy.

1 comment:

  1. True, increase in income value based on product price decrease is what we need. However the rate at which this change is going to take place may be too slow to be of optimal significance.

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