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Gas Prices Continue To Rise Blue Curry

Summary: Not since 2008 have gas prices been this high. The national average has risen 10% since last year. As of today the national average price per gallon is $3.612, with the largest reported price being $4.247 (Smith). Two main factors have really caused this extreme rise in the price of gas. First, the rising conflict in Iran over nuclear programs, and second, the revived American economy. Sanctions being put on Iran for nuclear purposes have put a huge strain on the oil trade. This directly effects gas prices as well. For America, the revitalized economy seems to have some unanticipated negative effects. With the job market improving, the fossil fuel is being utilized more and more. America’s (and the world’s) reliance upon the resource has not only caused the hike up in price, but a major environmental problem. With continued use of a dwindling resource, people will suffer through negative impacts from price and environmental issues. Unless the world abrogates gas usage, this over-consumption for gas will continue to have atrocious consequences.

Relevance: The rise in gas prices is extremely relevant to American history. Throughout history, the economy has continuously fallen and risen like a sine wave. With the rise of the economy, people spend more money on goods and services. When goods (resources) become abundant, price goes down, and vice versa, price goes up when goods decrease. So since gas is becoming to be in high demand and as amount decays rapidly, the price grows. For example, when America came out of WWI the economy was booming. The economy had never been so strong, so people were basically going on “spending sprees” to buy any and every product (“The U.S. Economy in the 1920s”). That caused a natural increase in price for these products. Also, when America emerged from the Great Depression (and WWII), there was another great economic boom. This boom saw Americans investing in foreign products in countries like Japan and Germany (“Post-World War II Economic Expansion”). So again, prices for these high-demand products quickly rose. So that quickly relates to our gas price problem of today. When the America economy improves, money is spent by citizens on important, useful, or entertaining products. And again in review, when products become high demand, like gas, the price goes up. In relation to the politics aspect, oil has also been an issue. In the 1973 oil crisis OAPEC put an embargo on oil (“1973 Oil Crisis”). Which easily relates to today’s issues with Iran’s threats to stop exporting oil. Due to these political issues the gas prices were quickly raised.

Explanation: America has transformed many times going in and out of depressions and beginning to find new markets in trade and commerce. The increase in gas prices is one of the most recent economic transformations. Clearly, America (and the world) has had issues with consumerism. The consumerism within this economic transformation raises many problems and controversies. This extreme focus on buying and using gas has led America to a bad economic transformation. With our primary focus on a fossil fuel, there will obviously be many issues within the heart of our economy. The over-consumption and heavy reliance upon gas will continue to raise the price. If that continues to happen, the world will be in turmoil.

Questions: 1.What is being done to stop consumerism of gas? 2.Is that a major political issue in the upcoming election? 3.What is the price of gas expected to grow to this year? 4.What are other factors influencing gas prices? 5.How exactly does oil price affect gas price? 6.What other aspects of America seem to be on repeat besides economic downturns and upswings?

Works Cited: "1973 Oil Crisis." Wikipedia. Wikimedia Foundation, 23 Feb. 2012. Web. 23 Feb. 2012. .

"Great Depression." Wikipedia. Wikimedia Foundation, 23 Feb. 2012. Web. 23 Feb. 2012. <http://en.wikipedia.org/wiki/Great_Depression>.

<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">"Post-World War II Economic Expansion." Wikipedia. Wikimedia Foundation, 23 Feb. 2012. Web. 23 Feb. 2012. <http://en.wikipedia.org/wiki/Post%E2%80%93World_War_II_economic_expansion>.

<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">Smith, Aaron. "Gas Price Surge: Up 10% This Year." CNNMoney. Cable News Network, 23 Feb. 2012. Web. 23 Feb. 2012. <http://money.cnn.com/2012/02/23/markets/gas_prices/index.htm?iid=HP_Highlight>.

<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">"The U.S. Economy in the 1920s." EH.net. Economic History Association, 1 Feb. 2010. Web. 23 Feb. 2012. <http://eh.net/encyclopedia/article/smiley.1920s.final>.