Is the skyrocketing price of gasoline one of if the not THE major cause of the current recession?
And is it not responsible for the economic downturn we are experiencing now?
I think that this is a factor, but the economy is so complicated I don't think it's the major cause. I'm not sure what is, but I know I don't like to pay $4 a gallon just to get to work!
Gasoline has been expensive for awhile. Characterizing it as skyrocketing isn't accurate. IMHO, things that have much more to do with the deficit are the unemployment rate and the housing crisis. As job creation continues to increase, we will come out of the recession, albeit slowly. This is the reason two consecutive presidential administrations have used stimulus fund to try to stimulate job creation. Dumping money into the economy can create a ripple effect in the job market.
Gasoline is a major contributing factor to nearly everything we do in America. All types of goods and supplies have to be transported to somewhere, workers have to drive or ride a bus , very few walk or ride bikes compared to the number that drive, food has to be shipped for processing and packaging then sent to warehouse to finally be transported to the stores. Gas is a major factor in the economy - not the only factor but definitely a major one.
short answer,........... yes.
longer answer,.... yes, yes & yes.
the price of fuel jacking through the ceiling was THE trigger for the entire economic melt down,.... the housing buble was very real,.... but it was the cost of fuel that popped it,.... families found themselves spending thier house payment money on thier fuel to get to work,... so they lost thier houses,.. thus begining the realestate crash,... buisness modles began to crumble under the new rising cost of transportation,.. so cost cutting meant jobs cutting so people lost jobs,... then lost thier houses,... blow #2 to the housing market,.... the rising cost of freight was tranfered to EVERY SINGLE THING WE BUY, groceries, dry goods, on and on,..... this all trandfered to wall street,..... as buisness modles crumbled under the weight of fuel prices, the stock market tanked,.... as banks absorbed more and more failed loans the banking industry crumbled,...
yup,.... in a nut shell,............... the catch phrase of our generation is not "its the economy stupid" as it was in the 90's,..... it is now "its energy stupid"
Higher Fuel prices is in not helpful...Yet it is a tough case to make it the cause. In a sense the recession has kept fuel prices high. The lack of economic activity has forced the Fed to monetize so much debt that it weakened the dollar further. Since Oil is priced and traded in US dollars, the weakend currency has driven up oil prices along with most commodities.
The trade off is that with any major sustained economic expansion the increased global consumption will also drive up prices. Some of this is the result of Opec's manipulation of the supply brought to the market. But it also has to do with our own unwillingness in the US to use our own resources.
The new discovery in the Dakota's will bring more energy to the market by 2013 than the entire state of Alaska. However, since there is no pipeline in place all the product must be loaded onto freight cars and trucks to deliver to refineries. That makes it an incredibly expensive venture and doesn't have the desired impact on prices.
by Sharlee 18 months ago
It well looks like Biden will break another historical record, gas prices. Get ready to celebrate yet another record-breaking feat by Biden. WeeeeeeSo, Biden skrewed with our oil producers and Opec, and we now are the ones to pay the piper. When will this inept man be asked to retire or...
by Ralph Deeds 13 years ago
Let me remind you why I’m writing. Just over two years ago, in September 2008, our country faced an economic meltdown. Fannie Mae and Freddie Mac, the pillars that supported our mortgage system, had been forced into conservatorship. Several of our largest commercial banks were teetering. One of...
by Scott Belford 5 years ago
After oil prices came down to record lows after the Great 2008 Recession during the Obama administration, they have skyrocketed since Trump took office. Around the beginning of 2016, Brent Oil prices were around $30/bbl. Today, they are north of $80/bbl.Why?
by Sharlee 12 months ago
Looks like European officials are very dissatisfied with Joe Biden, and his administration. Looks like his policies are taking down Europe too... WEEEEPOLITICO --- Nine months after invading Ukraine, Vladimir Putin is beginning to fracture the West. Top European officials are furious with Joe...
by Scott Belford 12 months ago
I was working on a different hub and in the process developed the following statistics about GDP growth throughout American history. Since George Washington, whose economic philosophy somewhat resembled those of today's liberals, there have been:- 10 periods where administrations who favored...
by ga anderson 9 years ago
I stole this from another thread, so the topic could be discussed without further hijacking the thread it was on. I hope that was OK.John, I am not putting forth criticisms for you to defend. I do not know enough about MMT to hold an intelligent conversation about it. I was merely pointing to...
Copyright © 2024 The Arena Media Brands, LLC and respective content providers on this website. HubPages® is a registered trademark of The Arena Platform, Inc. Other product and company names shown may be trademarks of their respective owners. The Arena Media Brands, LLC and respective content providers to this website may receive compensation for some links to products and services on this website.
Copyright © 2024 Maven Media Brands, LLC and respective owners.
As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.
For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://corp.maven.io/privacy-policy
Show DetailsNecessary | |
---|---|
HubPages Device ID | This is used to identify particular browsers or devices when the access the service, and is used for security reasons. |
Login | This is necessary to sign in to the HubPages Service. |
Google Recaptcha | This is used to prevent bots and spam. (Privacy Policy) |
Akismet | This is used to detect comment spam. (Privacy Policy) |
HubPages Google Analytics | This is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy) |
HubPages Traffic Pixel | This is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized. |
Amazon Web Services | This is a cloud services platform that we used to host our service. (Privacy Policy) |
Cloudflare | This is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy) |
Google Hosted Libraries | Javascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy) |
Features | |
---|---|
Google Custom Search | This is feature allows you to search the site. (Privacy Policy) |
Google Maps | Some articles have Google Maps embedded in them. (Privacy Policy) |
Google Charts | This is used to display charts and graphs on articles and the author center. (Privacy Policy) |
Google AdSense Host API | This service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy) |
Google YouTube | Some articles have YouTube videos embedded in them. (Privacy Policy) |
Vimeo | Some articles have Vimeo videos embedded in them. (Privacy Policy) |
Paypal | This is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy) |
Facebook Login | You can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy) |
Maven | This supports the Maven widget and search functionality. (Privacy Policy) |
Marketing | |
---|---|
Google AdSense | This is an ad network. (Privacy Policy) |
Google DoubleClick | Google provides ad serving technology and runs an ad network. (Privacy Policy) |
Index Exchange | This is an ad network. (Privacy Policy) |
Sovrn | This is an ad network. (Privacy Policy) |
Facebook Ads | This is an ad network. (Privacy Policy) |
Amazon Unified Ad Marketplace | This is an ad network. (Privacy Policy) |
AppNexus | This is an ad network. (Privacy Policy) |
Openx | This is an ad network. (Privacy Policy) |
Rubicon Project | This is an ad network. (Privacy Policy) |
TripleLift | This is an ad network. (Privacy Policy) |
Say Media | We partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy) |
Remarketing Pixels | We may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites. |
Conversion Tracking Pixels | We may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service. |
Statistics | |
---|---|
Author Google Analytics | This is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy) |
Comscore | ComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy) |
Amazon Tracking Pixel | Some articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy) |
Clicksco | This is a data management platform studying reader behavior (Privacy Policy) |