Sunday, May 22, 2011

Do Falling Gas Prices Spell Recession?

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An interesting article I came acrossed today regarding gas prices and the recession.
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8 comments:

  1. UnknownMay 22, 2011 at 4:05 PM

    Hmm. This is indeed interesting. But I am not seeing how these two are related. Can anyone clarify it for me?

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  2. Chris DendrinosMay 22, 2011 at 7:30 PM

    Well an economic expansion generally means more construction more products produced, etc. which means more oil is consumed. The price of oil consists of two components. 1. Supply and Demand and 2. Speculation. During a recession there is less demand for oil and less speculation that the demand for oil will increase thus cheaper oil.

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  3. MARKMay 22, 2011 at 9:27 PM

    This is a cool, interactive map displaying gas prices around the nation.

    Gas Spending and Prices by State

    http://money.cnn.com/news/storysupplement/economy/gas_prices_by_state/?source=cnn_bin&hpt=Sbin

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  4. BethMay 23, 2011 at 9:22 AM

    Interesting article. Good clarification Chris. It's something to think about.

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  5. Laura KochMay 23, 2011 at 11:57 AM

    Using gas prices as an economic growth indicator is interesting.And I like the map.

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  6. Andrew ManorMay 23, 2011 at 9:28 PM

    I really like that map Mark, especially the % of income part. It really shows how much the lower class suffers from higher gas prices because states that are among the poorest in the nation, such as Mississippi, pay about 14% of their income on gas...far higher than the national average of 8.8%.

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  7. EMeisheMay 24, 2011 at 8:50 AM

    I agree cool article and map. Apparently if Chris's analysis is correct poorer people who spend that much of their income on gas are in trouble either way. Less jobs in the recession or even bigger gas bills when the economy picks up. However I might argue that global speculation on oil operates independently or at least mostly independently from U.S economic expansion.

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  8. MattMay 25, 2011 at 1:33 PM

    Really interesting article. Although we are all well aware of gas prices on a day to day basis I feel we never really think about exactly how much of our income we spend on gas alone. Mark, I really like this graph, I think it does a great job illustrating our rediculous consumption. I feel if more people were aware of this information, we as a nation (especially lower income families) would be much more conservative.

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