Gas is expensive (Like we didn't know)

Well maybe it isn’t that expensive but it certainly has fluctuated a lot in recent years. What used to cost 75 cents a gallon now costs 75 cents a drop. People are forced to take drastic measures when money is tight. Just the other night a man at the gas station was attempting to sell a pair of Ray Ban’s to get even a quarter tank of gas. Gas money is especially tight when you drive a gas guzzling jeep like my family. Yes, gas is indeed expensive but why is it expensive? Due to the steady inflation of oil prices, less people could afford to buy gas. Not to mention many people began to loose their jobs, which reduced the number of people driving everyday. It wasn’t until the economy began to steady out that people began buying cars and gas.

     Gas is currently the cheapest it’s been since 2009 prompting more people to drive places. However, if 2009 has taught me anything it’s that gas can’t stay this cheap forever. Even so, people like me who combine credit cards, cash, and quarters to earn themselves enough gas to get home welcome the slight reprieve. Americans are saving on average $540 dollars on gas. CNN speculates that people are spending around $10 per fill up. They must all drive fiats because I assure you $10 wouldn’t fill a jeep. Maybe everyone is buying Fiats because their savings from cheaper gas allows them. Currently oil prices are at a 12-year low resulting in much cheaper gas.

       Why are oil and gas prices falling? Apparently foreign trade partners couldn’t reach a decision on how much oil to export so the solution was to send an outrageous amount. In an attempt to sell the surplus of oil they have lowered the prices to around $35 per barrel.  This is being heavily affected by changes in the markets of countries like China and Saudi Arabia. Places like China handle the surplus oil but have halted their markets due to sudden changes in their stocks. It leaves me to wonder if now there are just hundreds of barrels of oil sitting around. If so, why have prices been so high if there’s enough to just practically give away? Why aren’t we using this surplus oil and how much would gas cost if we just put it all on the market?

257K jobs for you Glen Coco! You go Glen Coco!

In a truly unprecedented twist, the economy has produced 257K jobs in the past year. This only assists in keeping the United States unemployment rate as remarkably low as it’s been. The economy is really trying to get its act together and creating jobs is a pretty good step forward. However, the recent surge of jobs begs the question of where have all these jobs been hiding? A few years ago the economy was in such a bad spot that companies everywhere were suffering from budget cuts. Anytime you turned on the news it was about another bulk lay off of employees. This made jobs very hard to find so why are they so easy to come by now?

      The answer is business. Businesses are opening their doors to new, skilled employees, which creates thousands of jobs. Leading the job creation pack was big businesses, followed by small businesses, then medium. I would guess these include jobs where specialization is required for some positions. One small business like a barbeque place may have hired 5 people to manage different aspects of it. This could mean there are even more jobs available. Sadly the increase in jobs didn’t help the market with some plummeting nearly 300 points. Even so, these new jobs are contributing to people’s confidence in the economy.

Not only are more jobs appearing, but they’re also paying more. Employers are looking for hardworking employees, so in order to create more positions they must be willing to pay. You could think of it though like an investment good. You invest in a new employee so that the chance of product of production can go up. Economists have begun theorizing that by mid 2016 America will be back up to full employment. Since unemployment rates are already so low, this is a goal many people can actually see happening. Hopefully the rise in employment numbers will encourage consumers to revitalize sales. I get the sense that’s the only way to ensure a successful economy. The previous lack of jobs shows clearly on the sales numbers for goods like cars. Even with all of these jobs, funding wont increase over night. The gross domestic profit, or the quantitative measure of the nation’s total economy, is only expected to increase by 0.7 percent. We’re still moving in the right direction though. With these employment rates and gas prices being the lowest they’ve been since 2009, this year’s off to a good start economically.

The middle class glow-up

For the first time in a while, the economy is looking up. Gas prices are lower, there are more job opportunities, and if you play your cards right you can power your home for $210 a month. So what do these recent changes mean for the average Joe? Well according to many middle class families, it means that the economy is booming. That's right, many Americans don't feel as much of a strain on their wallets and believe themselves to be in good financial standings. The reprieve in costs is helping middle class families get back on track, even allowing them to splurge every once in a while.

      In January of 2014, 57% of Americans admitted to feeling as though they were falling behind economically. Only a year later that number dropped to 49%. People are feeling more optimistic about their economic future and expect their situation to get better. This newfound confidence could stem from the resurgence of available jobs. People feel that they don’t need to worry if they loose a job because there are plenty in the area. I believe that the recent shift also has something to do with more businesses remaining operational. With lower costs on things like oil, gas, and energy the cost of operation goes down. This results in more job opportunities and higher wages for the people that work there. This is why people are now expecting raises in their salaries.

      Because people don’t have to pinch as many pennies, they now are buying more. The effects of the economic shift come full circle in a way. Without the consumers, sellers have no way to push the economy forward. Now that the economy is evening out, more people have the money to buy what they need. Consumption goods like cars and food are ways people have decided to treat themselves. One person interviewed mentioned this theory by saying, "You save a few bucks at the pump, you eat out a bit more." The other family also bought a house and an SUV with the money they are now earning. It’s almost as though the economy is spending money to make money. By reducing oil prices and gradually raising wages it allows people to spend on goods, which help propel the economy forward. With all of that in mind, hopefully by next year the economy will be in even better shape and minimum wage will be $15.