Gas Price effect on the economy Essay Example | Topics and Well Written Essays - 500 words

Gas Price effect on the economy - Essay Example Some develops faster and stronger than the others. Other factors can also be influence by the policies of the government, industry, technology, raw materials, and environment. The prosperity of the economy rises and falls with these factors, and one of these factors is through the industry of gas. When we talk about gas, it is inseparable with oil industry. Oil and gas industry is considered to be one that holds a stronghold in the world and America’s economy today. Oil and gas industry greatly affects the economy. The economy receives an improvement when there are large reserves and an increase of active drills in respect to oil and gas. People are able to consume more if the price of gas and oil falls. According to Perner (2008), the current gasoline prices are likely to have a large impact on consumer spending but a much smaller impact on the amount of gasoline purchased. Instead, the effect is likely to be felt in other areas of spending such as vacations, entertainment, e lectronics or eating out. Barbara Hagenbaugh (2007) stated in her report that economists believe that rising gas prices hurt but its impact is fairly limited.