Financial Instability Caused By Oil Usage
The United States is run by oil. Energy, transportation, and even the economy are based and dependent on the various aspects of oil. Without oil the world would have to learn to change their whole formed idea of living juristically. “Ninety-five percent of the country’s transportation is powered by oil” (Anderson, Glen). The importance of oil causes the United States to be highly dependent on oil; this forces the U.S. into severe financial instability. Most Americans assume the changing gas prices are the source of the country’s economic unsteadiness; “Last year the average cost for a gallon of unleaded was $3.51, the highest on record” (Walsh, Bryan). There is a significant amount of economic problems that cause the constant uncertainty of oil and its prices, which affect much more than just gas prices. This includes “America’s addiction to foreign oil [that cause] a significant impact on our economy and our national security” (Moore, Kenneth J.). The exploitation of oil, which cause financial instability, is an issue the world must address because it causes an increase in the country’s debt, high dependency on foreign countries, and everyday life economic uncertainty.
In the economy, oil usage is a very complex system, and it has factors that tie in with everyday life, as well as affect the country as a whole. For example, in America, the basic form of transportation such as cars, planes, boats, etc. are based solely on oil, thus affecting the country’s economy significantly (Moore, Kenneth J.). The level of dependency that transportation has on oil reveals how oil is important in everyday life, and raises the question: How would the U.S. be affected if there was even a minor shortage of oil? When it comes to the economy, oil is an exceedingly unreliable substance that should be better controlled because of its importance in the U.S. Furthermore, the constant demand for oil, even in the “sluggish global economy”, is expected to rise to approximately 800,000 barrels of oil being produced for everyday this year (Walsh, Bryan). Oil production continues to rise, despite the economic issues occurring globally. This increase causes oil prices to skyrocket, while certain places, known for their oil production, are starting to plateau possibly causing a decrease in the amount of oil found or produced. Oil is in every factor of America’s economy and should be a known problem throughout the country because of the constant instability it causes.
The country has significant debt because of the oil problems America is constantly dealing with. However, there is a high risk of continuing the debt in the country because of the constant changing of oil prices and how they affect the economy. The article by Bryan Walsh discusses the constant increase and slight decrease of gas. For example, when the U.S. lessened the country’s demand on oil, it still “threatened an already overwhelming economic recovery” (Walsh, Bryan). Because of the constant increase in oil prices, a family’s money is being spent on the necessity of gas. This then causes cut backs in other areas, which eventually leads to a decrease in the country’s revenue. Without an increase, or at least constant revenue, it threatens the dreadfully fragile balance of the nation’s debt. It works similar to the domino effect when compared to the oil based economy. Thus, America’s trade imbalance is caused by the small amount of output weighed against the extreme amount input it receives, America “borrows money or relies on investments from abroad, adding to external debt” (Anderson, Glen). The United States has continually become more and more in debt because of its oil imports in its increasingly unbalanced system. Specifically because the “outflow of wealth does not get recycled back into the U.S. economy” (Anderson, Glen). Oil imports and the increased pricing of oil is responsible for a great deal of the debt the United States is...
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