Economic Impact on Gas Prices essays

Economic Impact on Gas Prices essays Gas prices are up over 40 cents a gallon from this time last year. What impact will that have on the overall economy? A recent USA Today poll showed that 55 percent of people who make under $20,000 a year consider gas hikes a financial hardship. Only 30 percent of people who make $50,000 a year called the increases a hardship. If the recent gas price increases reflect the state of the economy in the late 1970s, with lines at the pump and inflation, do not worry too much. The United States is not as dependent on crude oil as it used to be in the 1970s. As a result, the United States will not face such an economic shock as it did when gas prices skyrocketed in the late 1970s. In the 1970s, energy accounted for 8.7 percent of every dollar in the gross domestic product compared to 3 percent today. But, just because the United States lost some of its dependence on crude oil, does not mean that higher prices at the pump will not affect the country. The country is at an economic low, and high gasoline prices can dampen these boom times. Consumers pay more at the grocery store, the hardware store, and the taxi to get where they need to go. A certain taxi company in Texarkana, Ark. has not increased taxi fares in 13 years, but that will now change because of the huge dent in company profit. Taxicab companies, with approval, will start implementing a $1 surcharge to cover the abnormal gas prices. Airline industries are also implementing a $20 surcharge because of the artificially high fuel prices. Shipping companies are charging retail companies more for the shipping. As a result, the increased costs are passed on to the consumer. ...