The Economic Impact of High Gas Prices

Topics: Petroleum, United States, Economics Pages: 6 (1149 words) Published: January 31, 2011
The economic impact of high gas prices 1

The Economic Impact of High Gas Prices

A Brown

Strayer University

The Economic Impact of High Gas Prices 2

The Economic Impact of High Gas Prices

Section 1: Introduction

The American economy is one of the strongest in the world; people from every

country comes here to live or travel on vacation with their families and take advantage of

its many economical opportunities available to its citizens. Traveling is one of Americas

Favorite pass time and a way of life for its citizen. When the quality of life is

interrupted, and people are not able do to the things that they use to do on a regular bases

the people panic and that send the nations economy in a tail spin and significantly change

the lives of, not just the citizens of this great county, but other economical markets

around us who depend on our economy success and model themselves after our way of

life. One of the economical factors that drive the American economy is its dependency

on oil and gasoline. Oil is a source of power that is control by the world developing

countries such as Saudi Arabia and other Gulf developing countries that monopolized the

markets and allowed us to depend on their sources and not look else ware for alternative

source of energy. The first energy monopolies were controlled by Pharaohs and kings,

they control who could and could not use common trees to burn as fuel to heat their

homes. The presence of timber control and dictate their way of life. Timber was the

prerequisite to power. When power is restricted or controlled it changes the way we

live our daily lives and will cause the economy to go up or go down and change the

economical out look for the future. During the 1940s the American leadership allowed

the country to be dependent on farign oil. With out the oil that Saudi Arabia and the

other Gulf producers supplied, the United States and its allies could never have achieved

the spectacular economic growth they posted in the post war era. The problems the

United States was not counting on were, we can’t control what goes on in the oil

producing countries, and we become hostage to their capacity to ensure an uninterrupted flow

of petroleum. And the dilemma is oil makes this country strong; dependency makes us

weak. It weakens us in a number of ways…
Section 2: Gasoline Prices

In May 2008, an average gas price in the United States approached $4.59 a gallon, shattering records and was at an all time high. But this was nothing new to American consumers. May was a month of records that broke one after another and that came on the heels of months of rising prices. Gasoline is the bloodline that keeps America moving, and tracking gas prices can feel like a roller coaster ride. They're down a little one month, up the next, and then they shoot up more than 50 percent in a year. Plus, they're different depending on where you look. Other states and cities can have very different gas prices from your local Gas-N-Go, to the average person, it probably seems as though there's little rhyme or reasons to how gas prices are determined. Americans have an insatiable thirst for gasoline. Just look at the amount of traffic on roads and highways, and you'll see that a severe gas shortage would practically cripple the United States. Americans drive nearly 3 trillion miles per year, according to the Motor and Equipment Manufacturer's Association. That's about 820 trips from the sun to Pluto and back.

Section 3: Rising Gas Prices
Rising gas prices not only affect the economy, but it has a major effect on the consumer who helps grows the economy. With gas prices...
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