The price of gas is a direct result of supply and demand. When demand is up - so are gas prices- when demand is down - so are gas prices. The U.S. economy is in a recession right now. Millions of people have been layed off from work and more layoffs are to come. As a consequence- millions of people are no longer driving to work lessening the demand for gas. I have three friends - who were recently layed off from their jobs. Each was driving close to 50 miles a day to work and back. Unemployment has gone up 1.5% in the last 6 months in the United States - that translates to millions of people not driving to work. Multiply that across the world (there is a worldwide recession) and the demand for gas is down across the world.
However- here is a warning! When the economy turns around and people start going back to work and start driving again... the demand for gas will increase and gas prices will increase. Please note that high gas prices is what ignited the recession. When gas prices were $4.50 per gallon consumers were spending $300 to $400 a month on gas just to get to work- so they stopped buying luxury items, stopped eating out, stopped going out, stopped buying electronics, stopped taking vacations....
When you have the enemy down- you don't let them back up! The Arab run oil states are our economic enemy... they are not our economic friend.
It is time to make the United States less dependent upon
foreign oil, build nuclear power plants, develop wind, solar and clean
coal technologies and drill for oil. We must do all of these things- but
the sort term solution is to drill for oil in America right now. The reason
- so when the economy does turn around -we will not go back into a recession
due to the high price of gasoline.
by Thomas George
© 2008 http://www.the-manumitter.com/