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February 22, 2012 Economy in recovery? Not so fast...

The unemployment rate is down, the furthest it has been in a couple years. For the most part, prices on things are dropping, and things seem to be getting better. This article contradicts that. Since we are in a little bit of a dispute with Iran right now, oil prices have been climbing, being at about $114 a barrel. The article predicts that there could possibly be gasoline selling for $5 a gallon by Memorial Day. There are also still lots of job cuts in the government, the United State’s largest employer. There can’t be much progress going on with all the election controversy that is to be expected every four years. We aren’t the only economy that’s slowing; China and India are as well (Hiring). Needless to say, we’re more idling than anything nowadays, even if the economy seems to be getting better.  The economy has been going down for many years, starting in about 2007. We haven’t seen many recessions like the one that we’ve had recently since the 1930’s, when the Great Depression occurred. The Great Depression happened when all of the stock markets crashed, leaving us in a debt that we couldn’t repay. Banks would shut down, and people with all of their life savings had to accept the fact that that was not money they should plan on seeing again. The unemployment rate at that time was approximately 25%, causing heavy industry to fail, and causing crop prices to decline. Some people think that the Depression started as a normal recession, and then gradually built to the crippling thing that caused people a lot of financial trouble (“Great”). The Depression is relevant to the economy now, because that’s where we could be in a short matter of time.  Oil prices have always been a problem with America. The first true oil shock was when the Civil War was occurring, and oil was something that everyone wanted. The oil prices went from $0.20 a gallon to almost $2 a gallon (Hamilton). Usually oil prices are higher when we are in war with someone, or when we have tension with a provider of the oil that we need for everyday things such as cars.  This relates to Economic Transformations because it shows that the economy is always moving and changing. Gas prices will always change, and there will always be periods of time where we’re in some type of a recession. It’s a part of growing as an imperfect country. Oil is a major part of our economy, and the prices of it effect those who drive, or need oil for their companies. The economy will never be at an exact standstill for a long period of time. The gas prices are a perfect reflection of that, as well as our recession we have going on right now. The economy is very fluid. And as long as we were civilized, we will have an economy.
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 1. What would be a proper estimate for gas prices in the next 50 years?  2. Do you think that economy will recover in the next 10 years?  3. What could essentially make the economy better?  4. Will conflicts with Iran resolve before a war erupts?
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"Great Depression." Wikipedia. Wikimedia Foundation, 21 Feb. 2012. Web. 22 Feb. 2012. .

<span style="background-color: transparent; color: #000000; font-family: Times New Roman; font-size: 16px; text-decoration: none; vertical-align: baseline;">Hiring, NEW YORK (CNNMoney) -- Employers Are. "Economy in Recovery? Not so Fast." CNNMoney. Cable News Network, 22 Feb. 2012. Web. 22 Feb. 2012. <http://money.cnn.com/2012/02/22/news/economy/recovery/index.htm?section=money_topstories>.

<span style="background-color: transparent; color: #000000; font-family: Times New Roman; font-size: 16px; text-decoration: none; vertical-align: baseline;">Hamilton, James D. Oil History. San Diego, California, 22 Dec. 2010. PDF.