What will happen to us if oil continues to rise?

Question

I am starting to really freak out! where will our economy be?

Answer 1

Yes, apparently analysts are predicting it to reach $7.

ps - try not to panic american has been through difficult times before.  i think things will balance themselves out but it will take awhile.

Answer 2

All right, I have a positive outlook on our economy.  People, please do not panic about the economy.  Panicking is not the thing to do now, it is going to be okay and panicking- yes its understandable and I am frustrated too - will not do much help.

I think the reason why there is so much worry about the economy is because it hasn't been this bad for a while.  I don't know that much of what occured in the seventies, but I do know it was bad.  And I guess about 25 years of security and mostly good economic times has lulled us in a way.

Now things are bad and people are panicked and I can understand why.  However, things aren't as bad as some people say they are.  First of all, we are nowhere near a depression nor will we get into one.  The world has learned lessons in the 60 or 70 years since that event and other nations won't allow it to happen to us- they depend on our economy because its strong (and because so much of different economy around the world uses the dollar too)- and they'll help make sure that we wont' collapse.  Also, there are controls in place to ensure that a depression won't happen.  One of them is the FED.  Sure it hasn't stopped economic problems but I think if it hadn't lowered interest rates, things would be worse.  It can't increase interst rates now though because that would stop growth.  Also, everything will be okay.  Things aren't as bad as they appear-- we are okay considering how bad things could be.  The US is not even in recession.  Negative economic (GDP going down for more than 2 quarters) GDP has not happened yet.  So yes we are not in a recession.  We're just in a period of slow economic growth-- and its normal for an economy to have problems such as this (though not great).

However, a 'good' thing about the bad economy is that its causing people to take extra care and take actions that are better.  They're spending more on just necessities and more significantly, they are putting more money into cleaner, alternative energy-- and cars with better MPGs.

Fuel efficient cars are being sold more.  That's good.  Less gas is used and therefore less demand.

people are travelling less.  That hurts the economy in a way and reduces some revenue for different stores.  However, its also good because its better for the environment.  Also, it reduces demand for gas so that could help.

More people are taking the light rail.  That reduces pollution and gas usage.

I support methods like using cars less and increasing consumption (usage) in buses, light rails and different methods.  Reduce demand, reduce your need for oil.

The government needs to further incentive for such methods.  They also need to give rewards and bonuses (benefits that are great) to companies that create products with higher alternate energy (increase usage).

That is the only way we can break free of oil dependency.  Alternate energy is the way to go to get out of high oil prices-- its a long term answer nevertheless.

Answer 3

Obviously our wages have to go up in order to meet the new higher fuel costs or we won't be able to get to work.

Other than that ... well ... we do have our feet to get us around.

Then there is car pooling, smaller cars, motorcycles, scooters and even skateboards, rollerskating and bicycles.

There is public transportation, if the demand rises then they will have to add more buses, high speed trains, commuter rails, commuter shuttles, trolleys and possibly build subway systems.

Our immediate world will shrink.  It will be more like Europe.  Eventually we will only have to walk a block or two to reach the grocery store, bakery, butcher ...

We will start to grow food in back yard gardens again.

Shorter work week

Telecommuting

Company run shuttle service to and from work

Then there are alternative fuels.  Nothing says we must fuel our cars with gasoline.  Eventually we will have to switch over to other methods.

I'm thinking ... if they can Nuclear Power submarines ... why not other things?

Answer 4

well there are some people who think we cant drill to get oil and have wind mill things so they say( people just dint drill b/c of them) people will lose houses and lose electricity so most people break down on the highway!! all I can say is I hope they stupid drill or we the US is going down and very fast just look how every thing goes up b/c of it!!

Answer 5

I think a lot of people who moved out to the suburbs will start to move back into cities, creating more demand for city properties, if these people have to commute long to get to their downtown jobs. But other wise people will look for jobs closer to their homes, or change their homes. Food prices will continue to go up, lower wage earners will be forced to use more services like food pantries to make ends meet because fuel is eating up a good part of their budget trying to drive to work. More people will car pool, more people will start to grow their own gardens....but expect there to be continued shakeup in food prices, gas prices, loss and closing of business, drop in the stock market and loss of jobs at least for 1 more year.

Answer 6

Oil gets high enough - we will switch to alternative fuels & increased conservation

Answer 7

If oil prices keep climbing sooner or later were all going to starve to death. Everything you eat unless you hunt and grow veggies got to you on a truck that uses gas. Probably ought to stockpile some food in a safe location.  You might say I'm stupid or crazy but we'll see when you are eating rat meat and I will at least have ramen noodles.

Answer 8

Oil is pegged to the US dollar, so what their government is doing to offset increased demand in places like China and India is print more!  The more money the "federal" [Which isn't really federal] reserve prints out the more worthless the American dollar becomes and the more inflation increases.

So oil is going to go up, why wouldn't anyone want to capitalize on a resource they own? OPEC nations should have the right to charge whatever they want for oil, it's theirs.  So prices are going to keep going up, and up, and inflation is going to go up everywhere as long as they recieve merchandize from overseas or make use of oil in some manner (think plastics).

In short what will happen is increased worldwide inflation and the diminishing value of peoples retirement funds and savings.  The latter really saddens me (but inflation is great for my student  loan)

Answer 9

This economy is headed for the trash . Get prepared for the greatest change in your life ever and of all those you know . Barter will be the name of the game . So stock up on goods .

Answer 10

Depends, might see the rise in wages to compensate the loss in standard of living, it certainly looks that way. Either that or "stagflation" might occur.

Hmmmmmmmmmmmmmmmmmmmmmmm

Answer 11

I wonder how the human race ever got this far!

Answer 12

We live life...ONE DAY AT A TIME.

A few years ago..a study was done...and only 2% of the  situations most feared, by those polled, ever came to pass....only 2%....

Don't look at the problem....look for the solution....

We will be just fine...if we don't panic.