Our Economy Suffers Due to Elevated Oil and Gas Prices

Our Economy Suffers Due to Elevated Oil and Gas Prices -...

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AXIA UNIVERSITY OF PHOENIX Our Economy Suffers Due to Elevated Oil and Gas Prices Effective Essay Writing / COM 150 Professor Deanna Cusatis Maria Mella May 4 th , 2008
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AXIA University of Phoenix The Impact of Oil and Gas Prices on the Economy 2 Summary Oil prices are still a concern for the economy of the United States or better said the world. The Strength in our Macro and Microeconomics are tightly linked to the fluctuation of oil and gas prices, causing the economy to collapse or to flourish. Today we are experiencing depreciation in the value of the dollar, the stock market has slumped and closes in minus red numbers every day, unemployment level has raised, and corporations are going bankrupt. In 2006 economist did future analyses of today’s economy basing them in the fact that the prices would only raise $ 20 dollars a gallon approximately. That was not the case, in April 2006 the gallon was about $ 66.02, and today that same gallon has reached the unprecedented price of $ 116 . The economy is no longer resilient to the high prices of crude. The increment in oil prices have caused a numerous of aftermath effects. Today companies and consumers are paying the price. When we take a look at the world’s economy we see that there are markets that are experiencing the same effects that we are. The International Energy Outlook 2007 (IEO) studies indicate that the energy consumptions escalate a 57% from today to 2030, by far more consumptions than sources of crude. This data supports the fact that the world’s economy is still tightly linked with the prices in oil.
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AXIA University of Phoenix The Impact of Oil and Gas Prices on the Economy 3 Energy Prices and the Economy “Almost all analysts have agreed that continued energy price increase will affect the overall economy and employment, and might affect different sectors of the economy in different Stokes Jr. 2006). In the past years, the economy seemed to maintain stable and far from declining it was growing regardless of the prices of crude, but today the economy seems not to be as resilient and stable as years ago. Are the prices in Oil and Gas affecting the Economy? The currently rise in crude and the collapse of financial markets are threatening with the possibility of a recession. The consistent growth even if not as expected has diminished in the first quarter of 2008 and can come to a stop for the second quarter. Perspectives towards the forecast of the economy have changed and mainly this is due to the underestimated rise in crude and its derivates. The Bureau of Unemployment Statistics indicated that, “in March 2008, the amount of persons unemployed because they lost jobs increased by 300,000 to 4.2 million. Over the past 12 months, the number of unemployed job losers has increased by 914,000”. (April 2008). The Bureau of Unemployment output was that there is less money coming into the economy
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This note was uploaded on 05/15/2011 for the course COM 150 taught by Professor Johannahvanatta during the Spring '08 term at University of Phoenix.

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Our Economy Suffers Due to Elevated Oil and Gas Prices -...

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