Gas Prices Dropping

Gas prices dropping certainly won't hurt the United States economy. It seems the prices are lowering to below the $3.50 a gallon mark for the majority of the country. In Southern Indiana, gas prices here are $3.40 a gallon.
Does this latest drop in prices mean the United States economy will get a boost as we head into the warmest months of the year? Or is this just another short drop before prices once again increase back to $4 a gallon?

It's a question many Americans would love an answer to. It seems there is little rhyme or reason as to why gas prices have increased so dramatically the last few years. Driving has become an option many Americans will not choose during normal months of the year when vacations are in order. The excess money being spent at the pumps is also taking away extra spending money from the majority of Americans. Does this mean the rising gas prices are to blame for the horrible economy? It certainly isn't helping the availability of cash flow for the average man and woman in the United States.

When prices hover near $4 a gallon, many people are faced with the dilemma of whether or not to drive or spend extra money. Instead of spending paychecks on things that aren't necessary, many are forced to make the painful decision to opt out of extra spending in lieu of paying high gas prices. Let's take someone who drives an SUV. If that person once spent 32 dollars every week filling up a 16 gallon tank at $2 a gallon-they are now paying $60 to $64 bucks a gallon. Even with prices lowering to $3.50, the fill up of a tank could cost $56 dollars. Some stats I've seen say the extra money spent on gas is about $12 a month on average. I can't agree with that stat at all. Most of us use a tank every one week to every one week and a half. That means we could be spending $24 dollars every single week in comparison to when prices were at the $2 mark. That $24 dollars a week could translate to over $1,000 a year. Considering many companies aren't offering cost of living raises, that pain could take away virtually every spare penny a person might have for vacations, travel or extra spending during the course of the year. That's how dramatic the gas prices increase has been for many people.

It doesn't take a rocket scientist to do simple math and illustrate that the majority of Americans are getting hosed with the price of gas. It's also incredibly insane that analysts might feel that those same Americans should be enthused by prices hovering around $3.50 per gallon. It just isn't cutting it. Something needs to be addressed and should have been addressed months if not years ago. The price of gas is and always will be indicative and correlating to the United States economy. For every effect, there is an equal and opposite effect, right? I think it's safe to say there is a direct correlation between the rise in gas prices and the spending of U.S. dollars. It might not affect the wealthy-but it sure does affect the other 90 percent of the country in terms of choices on how to spend extra money. The bottom line is there is no extra choice to make. Buying gas is a necessity. When Americans are forced to spend that extra money at the pump, retailers, grocers and tourism places will be the ones to suffer over and over again.

Until the price of gas is solved, the United States economy isn't going to fully recover. I say, no matter what analysts might believe to be true, that the economy will go nowhere before that happens. I think the the economy and gas prices are walking hand in hand. If the government wants to free up spending money to boost the economy, this is a problem that needs to be addressed and fixed. If we eventually are looking at $4 to $5 per gallon like some other countries already do, the economy could stay in a recession for years to come. The pain at the pump then would extend into just about every household in the U.S.

So how do we fix the gas prices? Some analysts believe that it's a problem that will never be completely fixed. There has been talk about electric and hybrid cars but nothing substantial has ever been introduced that would solve the problem. The cars are so expensive that it doesn't truly alleviate the rising cost of gas prices. It just transfers the extra spending money into a vehicle that might not last long enough to offset the high cost of the car itself.

I don't think there is a solution in waiting to be honest. I'm not an engineer or mechanic, so I don't have a solution myself in mind. The only thing I can guarantee is that the U.S. economy isn't going to improve dramatically until gas prices drop significantly lower. Americans are gaging the economy by the price of gas. In times of high gas prices, people get extremely conservative(as well they should.) That means less spending and more companies hurting. It's dreadful that oil companies are getting extremely rich while other companies are suffering the consequences. Most American families are also suffering the burden of this pain at the pump-or so it's called by television news reporters covering the crisis on a weekly basis. It's not just an inconvenience now for the bulk of Americans. It's a nightmare that just doesn't seem to be a priority.