Some Good Economic News…Some Not So Good

Good News: Oil prices have dipped dramatically lately. I have followed energy prices at the futures level since 2002 when I became upset that gas was skyrocketing to the insanely high price of $1.70. These days, $1.70 seems cheap. While I don’t think we will see $1.70 gas again, I do think a price around $1.99 is possible in many areas by December. Some people have said prices are going down because “an election is near.” Nope. It is because our economy is weak and getting weaker, and demand is down in developed countries, like the U.S. Thus businesses are using a lot less fuel, and so are consumers. Part of the price drop is that Americans have finally wised up, and have started conserving energy.

This is an example of why it is important to conserve energy. Using less fuel lowers prices. That is basic capitalism. If you want to lower a price you do one of two things. You either increase supply or reduce demand. Right now, the oil market is well-supplied because there is a lot of supply and weakening demand. It is a shame that it took a near economic collapse to lower oil prices, but there is at least a little good news amidst the doom-and-gloom. I just hope we don’t forget about $4.00/gallon gas, and that we keep conserving, and keep developing alternatives, or we will be back at $4.00 very soon.

About David Bennett

David Bennett is a teacher, writer, and speaker. His articles, about topics from weight loss to popularity, receive over a million hits per year and have appeared in many publications. He writes for The Popular Teen and other sites. Follow him on LinkedIn or Twitter.