Monday, November 16, 2009

Factors that Destabilize the Economy

Besides high oil prices, what are some other factors that affect the economy? "The price of oil affects just about everything that is made, transported, eaten and sold in the United States. But with oil approaching $100 a barrel, the impact on the U.S. economy has been less than many analysts expected.

Time and again, economists from Alan Greenspan on down have warned that higher oil prices are inflationary. They make it more expensive to drive, to buy an airplane ticket and to manufacture anything from air conditioners to zippers." Listen to the podcast and then add your own answer.

http://www.npr.org/templates/story/story.php?storyId=16211938

17 comments:

  1. I think it is horriable that oil barrel cost $100 now a days. That is going to effect on US economy. We are already facing hard time with our economy and we have one more thing to worry about, oil. It is also going to effect on normal people's life because from now on everything that requires oil going to cost more than it had been before. As everyone knows that we uses oil in cooking, transportaion and many more. Normal people going to pay more for air plane tickets, their car and some other stuff. Now it is hard for us to afford everything we used to buy and we used to enjoy. This is even hard for our economy. What we can do now is find some substitute that fill oil requirement like solar power. Overall it will be hard for every one to afford stuff that require oil.

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  2. I think it is horriable that oil barrel cost $100 now a days. That is going to effect on US economy. We are already facing hard time with our economy and we have one more thing to worry about, oil. It is also going to effect on normal people's life because from now on everything that requires oil going to cost more than it had been before. As everyone knows that we uses oil in cooking, transportaion and many more. Normal people going to pay more for air plane tickets, their car and some other stuff. Now it is hard for us to afford everything we used to buy and we used to enjoy. This is even hard for our economy. What we can do now is find some substitute that fill oil requirement like solar power. Overall it will be hard for every one to afford stuff that require oil.

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  3. It is so surprising of the oil have been arisen up so much, that could be influenced all the transportation. It is effected all the normal supplies, but it have not been that much crazy as people expected yet. When ever the oil were so expensive that the other natural materials, such as, coal, natural gas, or bio energy etc. There is always some other method to work out. It has been lead all the manufacture companies became difficult, base on one of the company leader.
    "The raw material have not been that arisen that much, and our company working very well, it have been create a new record on August, and we broke that on last math October." Jay Bender. So no matter what have been risen up, it could be solved, it may take a few months.

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  4. other things that affect the economy are for example people's spendings.If people don't by stuff then all the stores loose money and if stores' income decreases, then there is no jobs for citizens and if there is no jobs then the economy goes to the toilet.

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  5. I feel sorry for the U.S economy right now, because oil took over everything that we have right now. Oil Is the one thing that need the most and it is increasing it price. So the other thing that going right now is the health care. Everyone In the world is healthcare. We need free insurance. Not everyone can afford insurance. Maybe for first class people, but not the lower class people. So, It is one thing that will affect our economy.

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  6. To think that the price of oil has rised from $32 to $100 just from 2003 to 2009, that is just redickulous because the America need oil more then anything. If I remember correctly it use to be in the cents back in the day to rise up to $100 its just no good. I guess that people who have more oil know that we would pay anything for oil so they rise the prices of oil, I guess that how it works. I where to think I would say that the earth is running out of oil so thats why they have rised the prices so high .

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  7. At list oil helping our economy, like tax, and almost everybody use oil. But were running out of it, and it created so much problem, like the war in the Middle East. I believed oil is the cause of that. There are so much problem that can cause the economy a huge problem. Like illegal marijuana, lots of people smoke dope, not for treatment, its for fun. Like alcohol, it help the economy, because of taxes. But it affect other people living, thats why they have the law, if you get DUI you get arrested. Government don't realize that their losing money, because of marijuana is not legal. But if they legalize it, i believe it's going to help our economy big time.

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  8. everybody who buys gas or petroleum products. supply and demand. We demand tons of oil so up goes the price, i think the price is going to increase in a few years and it is going to be global demand. because i other countries depends of u.s.a.

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  9. This is the worst era to have economic problems or any problems in particular. The whole world have to face the effects of wars such as Iraq, and also the natural problems that humans have caused such as killing animals all the way to their extinction and global warming. Now all the humans are going bananas and beserk because they are complaining of the prices for the gasoline. It is only a matter of the time before the world's economy falls apart.

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  10. everybody buys gas or petroleum products, that means supply and demand. We demand tons of oil so the price goes up and i think the price is going to increase in a few years and is going to be global demand actually is really bad because We are passing hard time with our economy.

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  11. Smaller increases in spending show the U.S. was dependent on government stimulus programs to help dig the world’s largest economy out of its worst recession since the 1930s. Growing profits lifted purchases of equipment and software, indicating investment by companies such as Verizon Communications Inc. will help make up for smaller gains in household purchases as unemployment mounts.

    “Over the next couple of quarters, it won’t be the consumer that will be driving GDP higher, it’ll be corporate spending,” John Ryding, chief economist at RDQ Economics in New York, said in an interview on Bloomberg Radio. “Consumer spending will not come back in earnest until we start creating jobs and income.”

    Stock-index futures trimmed gains after personal consumption trailed economists’ estimates. Futures on the Standard & Poor’s 500 Index added 0.2 percent to 1,106.0 at 9:27 a.m. in New York after climbing as much as 0.3 percent.

    The pace of growth matched the median forecast of 78 economists in a Bloomberg survey. Estimates ranged from gains of 2.4 percent to 3.5 percent.

    Consumer Spending

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  12. Smaller increases in spending show the U.S. was dependent on government stimulus programs to help dig the world’s largest economy out of its worst recession since the 1930s. Growing profits lifted purchases of equipment and software, indicating investment by companies such as Verizon Communications Inc. will help make up for smaller gains in household purchases as unemployment mounts.

    “Over the next couple of quarters, it won’t be the consumer that will be driving GDP higher, it’ll be corporate spending,” John Ryding, chief economist at RDQ Economics in New York, said in an interview on Bloomberg Radio. “Consumer spending will not come back in earnest until we start creating jobs and income.”

    Stock-index futures trimmed gains after personal consumption trailed economists’ estimates. Futures on the Standard & Poor’s 500 Index added 0.2 percent to 1,106.0 at 9:27 a.m. in New York after climbing as much as 0.3 percent.

    The pace of growth matched the median forecast of 78 economists in a Bloomberg survey. Estimates ranged from gains of 2.4 percent to 3.5 percent.

    Consumer Spending

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  13. The US economy "has shown a remarkable capacity to bounce back," Singh told CNN, hailing "the entrepreneurial spirit which is the hallmark of the American enterprise system."
    "I have no doubt that these things are not permanent, irreversible shifts, but that the American economy has the capacity to bounce back to its normal growth mark," he said of recent US economic woes.
    Singh holds a doctorate in economics from Oxford University and spearheaded India's market reform drive in the 1990s that ended decades of state economic planning.
    The Indian prime minister dismissed talk in some emerging economies about replacing the dollar as the key international reserve currency.
    "As far as I can see, right now there is no substitute for the dollar," Singh said.
    China's central bank has proposed a shift away from the dollar to a basket of currencies that also includes the euro and yen, calling excessive reliance on the greenback a destabilizing factor for the global economy.

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  14. I think Luis got good point and I think his idea is good about higher cost of Oil barrel but I think Jamer had proved his point but he is not clear about what he actully wants to talk about. I would go with luis's idea because it is more clear and easy to understand it.

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  15. I think Luis got good point and I think his idea is good about higher cost of Oil barrel but I think Jamer had proved his point but he is not clear about what he actully wants to talk about. I would go with luis's idea because it is more clear and easy to understand it.

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  16. Sinai, it is a good point, but over all people still could pay the bills of gasoline, but not everyone could pay the mortgages. That is the one make the Econ. get hard.

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  17. I think Jay has a very good point because its not right to pay $100 for a barrel of gas when our economy is so bad... I think the prices should come down.

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