The Effect Of Gas Price On The Economy
The USA consumes 400 million gallons of gasoline every day which has pushed gas prices to record highs, and having an all-pervasive and on-balance a damaging effect on the US economy. This makes that most motorists in the USA/Canada are shopping around to find the best deals on gas, but are still paying a lot more for it. High gas prices make people stop and think about their commute. This will affect the US economy. Analysts were predicting a gallon of regular to climb as high as $4.50 a gallon in California by Easter 2011. The effects of such big cost hikes will reduce available spending money for all those on average wages and below who need to travel significant distances in their cars, and this will further depress the US economy. Cars now are more fuel-efficient than they were in the 90s, so car owners can reduce your spending on gas by choosing fuel efficient vehicles. This will tend to raise car imports to the detriment of the US economy until the US manufacturers catch-up. It is not all bad news though. Companies that own oilfield reserves will be seeing the value of their resources growing, and businesses that are connected with the renewable energy market are growing rapidly right across the range of renewable energy sources from wind, to thermal energy, and of course that most popular of renewable sources which is solar. Renewable energy companies are growing fast and employing increased numbers of staff.