March 2nd, 2011 11:22 EST
Middle East Crisis Still Playing Major Role in Rising Oil Prices
Most people in the U.S. are watching and waiting for the Middle Eastern crisis to finally come to an end. We have all watched the people of Egypt overthrow their leadership and then watched Iran and now Libya join the ranks of trying to accomplish the same goal as the people of Egypt accomplished.
This is all well and good and I support anyone who has to live in a country that has a government made up of bad leadership like some of the Middle Eastern countries not all to try to make a change in that leadership by protesting but since it is happening where most of the world`s supply and demand of oil is manufactured it is having a huge impact on the rising costs of oil and gasoline as we all see on the news every day.
We all know that this crisis in the Middle East has come at the wrong time. Most Americans have been beat up by the recent economic collapse and the many pay cuts and lost jobs we have all suffered through and are now at the stage of watching the smoke clear and trying to evaluate the damage it has had finically on most families still trying to get a grip on a secure job or even find a job. The crisis in the Middle East has only added more damage on this by raising costs of commodities people need.
In a couple of my past articles, I have mentioned the effects of what the rising oil prices have on the rising gas prices in this country and what this will mean to people not working or still recovering from the recession. The economy is still trying to muster enough speed to continue heading in the right direction.
The rising gas prices and the effect of this on the overall economy which will result in higher food prices, or any commodity that is trucked in will surely either stop the economy from growing until gas prices lower or depending on how high the gas prices may rise could result in a second bout of another recession.
Some experts agree that if gas prices were to rise to $3.75 cents a gallon the United States economy would still more than likely continue to grow. This would still have a big effect on most people`s wallet and the growth would not come from people spending more money in the retail section of the economy.
If the price of gasoline were to hit $5.00 a gallon which I have heard could very well happen, the effect would be devastating on the economy and could throw us back for round two of a second recession. The reason is everyone would basically stop spending and not just people but also most businesses would stop spending except for necessities and would stop hiring. The economy would only be affected if the $5.00 a gallon of gas was sustained for a long period of time not a short period.
Our government is working hard on trying to come up with fixes for this and is trying to implement strategies to alleviate this from happening. I back and support our government on this and hopefully they can keep the economy going in the right direction.