http://money.cnn.com/news/newsfeeds/articles/marketwire/11G027314-001.htm
The car sales in 2014 have increased by three percent from the following year 2013. The automobile industry has a great impact in the U.S. economy considering there around 255 million registered cars each worth tens of thousands of dollars brand new. The increase of the three percent is most likely due to the drop in oil prices caused by a recent finding of oil present in America. In places like southern California, prices have dropped from four dollars a gallon to almost three and places like Ohio have gone down from three dollars to almost two. Gas is a every day necessity for a lot of people who need to commute to work or even school and with the prices dropping by a dollar, people can go out and buy maybe a newer car they want or a more economical one, so when the prices go back up it will save them time from attending the pump and more importantly money. Sales went up when oil prices dropped.
I think it's interesting how some industries (mainly the oil industry, but many others as well) consider falling prices to be a 'crisis', whereas others actually profit off of it. Whether or not it is harmful to the economy as a whole does not always lie within the best interests of individual companies.
ReplyDeleteThis drop in oil prices has been a major motivation for people to buy a new car due to the fact that it won’t break their bank in order to drive. This increase in car sales has a major impact on the Unites Sates economy do to how large the demand is for cars once oil prices decrease.
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