Sunday, October 25, 2009
Gas Prices on the March, as the Economy Heats Up
Within a matter of a few days, a local gas station that I pass by on Route 112 (in Medford, NY) had its prices rise on standard gas from $2.52 to $2.67. This has occurred at a time where the overall economy (barring the rising number of jobless claims) is said to be "recovering" and continuing on a path of growth. This makes my prediction of a few months ago on this blog, and my general feeling on this situation, bear some fruit. That is, that as we see the economy recover, we will also see an increase in oil prices and by extension, rising prices when you fill up your car. This will of course, be a main contributor on dousing a huge stream of cold water on any recovery. Since our economy is dependent on abundant, cheap oil to function as we have come to know it. No new energy = no recovery, and in the long run, no economy as we have come to know it. No growth, little prosperity. Long-running economic concepts like "the market" and the "invisible hand" of Adam Smith will be next-to-meaningless, since these concepts, and the people who devised them and preach them to this day, have failed to account for scarcities of resources that, to this point, we have taken for granted.