High gas prices can bring down the economy
Tue, 28 Aug 2012 23:03:43 GMT —
The recent jump in gas prices in effecting people's wallet, but it also affects the economy.
Aaron Johnson, a professor of economics at Darton College, says that gas price increases can sometimes show a strengthening economy, as the price jump can sometimes be from high oil demand caused by people traveling.
When the prices stay high, is when Johnson says we have to worry, " People make less trips to the grocery store, (they're) less likely to eat out because they're trying to find ways to curb spending, and when they eat out less and shop less that impacts industry, that impacts jobs."
A.A.A. is reporting this week's hike was caused by the suspension of oil production due to hurricane Isaac.