Difference between revisions of "The Effects of Rising Gas Prices"
(New page: In 2005 gas prices were sitting around $1.93 a gallon and is now (2008) sitting at about $3.59. The outlook of $4-5 is not out of the question, it is definitely a possibility and somethin...)
Revision as of 15:14, 9 October 2008
In 2005 gas prices were sitting around $1.93 a gallon and is now (2008) sitting at about $3.59. The outlook of $4-5 is not out of the question, it is definitely a possibility and something no one wants to bare. “So even if a person fills up there taken (22 gallons) just once a week, that’s and extra $146.08 a month they are paying out. Based on commuting experience, fill-ups are required about twice a week, so the cost is closer to $300 a month.
This is a lot of money, but have you ever wondered how gas prices are affecting us past what comes out of our wallets? The price of crude oil per barrel has risen to its all time high of $119 in April 2008, and the projection in 2009 is going to cost $150!
How Gas Prices Are Hurting Kids
Rising gas prices are beginning to hurting one of the worst things possible, our youth’s education. “The school buses in Dubuque County, Iowa, travel 4,900 miles each day ferrying kids to and from class. That is the equivalent of driving across the entire United States and halfway back again. The price of the diesel these buses run on has jumped 35 percent over the last year. The extra money paid to fuel the buses must come out of the local school district's general fund - money it would prefer to spend on other things.”<ref name="SteveHargreaves">How Souring Fuel Prices Hurt Kids, by: Steve Hargreaves; http://money.cnn.com/2008/04/10/news/economy/schools_fuel/index.htm?postversion=2008041016</ref> In this article, it states that this school district alone has spent 70,000 dollars more this year, made up of 4 months, than it had all of last year. With this said the projections look like this; with 210,000 dollars exceeding last years budget would be the equivalent of paying 600 teachers yearly salaries. All of this money going to fuel is taking away from; new textbooks, in class technology, teachers, and substitute teachers.
Affecting The Local Housing Markets
With the economy looking at a straight shot into a recession many people today are saving their money instead of using it for everyday consumption. With this being true, many people are not looking or willing to take on a new home loan or refinancing for a newer home. In York County, Pa. “During the first two months of the year, nine homes were sold in the Southern School District – this is a 79 percent decline compared to 2007 when 43 houses were sold. At the same time, the median sale price in the district decreased 23 percent from $273,600 to $210,000.”<ref name="SeanAdkins">Gas Prices Hurt Local Housing Market, by: Sean Adkins; http://ydr.inyork.com/ci_8925725</ref> The high gas prices are at fault for the significant decrease of the homes sold in York County because the surrounding Maryland residents do not want to migrate into these higher gas priced areas. This is not just happening in York County, but all over the US. People are fearing the long commutes to work due to the twice a day drive causing people to rethink where they may want to live. The demand for homes near larger employment areas begin to increase. Holders of real estate in rural areas are finding it harder to sell their homes on the market. “Apartment buildings have once again become a solid investment as people move out of homes they can no longer afford, and first time buyers find it impossible to qualify for a mortgage.”<ref name="BiggerPockets">Bigger Pockets, by: Michael Creel; http://www.biggerpockets.com/renewsblog/2008/04/03/fuels-costs-and-re-investor/</ref>
High Gas Equals High Food prices
The high gas prices do affect the price of food because of the cost to deliver the groceries. Transportation is needed for the food to get from the farms, to packing plants, to the grocery store, and then home. “Over the past 12 months; eggs are up 33 percent, beef is up 13 percent, chocolate is at a 17-year high, and – just in time for summer – ice-cream prices are expected to be 20 percent to 30 percent higher.”<ref name=ABCSussman">ABC News, by: Dalia Sussman; http://abcnews.go.com/Business/Hybrid/story?id=86057&page=1</ref> According to the Department of Labor, pasta products have risen 30 percent and fruits and vegetables have risen 20 percent. In just 10 months the price of wheat has tripled. This is not just affecting the bread we buy because wheat along with grain is what farmers use to feed cattle, chicken, and dairy cows. All of these animals are a part of most other meats and dairy products we buy to feed our families. This is creating a chain reaction of prices that are affected. "According to the United States Department of Agriculture shoppers are paying about 13 percent more for milk than last year, 10 percent more for fresh chicken, 12 percent more for apples, and eggs are up 19 percent."<ref name="KBTX">Rising Gas Prices Affecting Food Costs, reported by: Meredith Stancik; http://www.kbtx.com/home/headlines/16358551.html</ref>
Gas prices are rising and are becoming a major blow to many financial situations. The prices are hurting everyone at the pumps as well as housing markets, food prices, and most importantly our children’s education. The cost to fill up has increased so significantly that it no longer affects transportation to and from places but has also taken control of our everyday lives.
1. McCain's gas tax cut draws fire, by: Steve Hargreaves; http://money.cnn.com/2008/04/15/news/economy/mccain_gas/index.htm?postversion=2008041513
2. Why Gas Prices Rise as the Dollar Falls, by: Rick Newman; http://www.usnews.com/blogs/flowchart/2008/3/10/why-gas-prices-rise-as-the-dollar-falls.html
3. Q&A: What's Behind High Gas Prices?, by: Scott Horsley; http://www.npr.org/templates/story/story.php?storyId=5365439
4. AU Gas prices + charts; http://www.shell.com/home/content/au-en/shell_for_motorists/petrol_pricing/trends/long_term_trends_0116.html
5. Global gas money chart; http://money.cnn.com/pf/features/lists/global_gasprices/price.html
6. Surge in oil prices prompts warnings of global recession, by: Danny Fortson; http://www.independent.co.uk/news/business/news/surge-in-oil-prices-prompts-warnings-of-global-.htmlssion-814116.html
7. Us state gas prices. 7/2007, MSNBC; http://www.msnbc.msn.com/id/9317029/
8. Oil price, Oil Dashboard Counter; http://www.oil-price.net/
- This article is based on an article from Deletionpedia, where it ended up right before it was deleted from Wikipedia.