What effect will lower gas prices have on the economy?
Capitol Media Partners
Negligible. With local politicians continuing to blindly enact regulations that chase away business and opportunities, particularly for young Californians, decreasing oil prices will not make a dent in the problems facing the region.
We’ve already seen a change in consumer buying trends. Shoppers of small and midsize cars have shifted their focus to small and midsize SUVs and trucks. Buyers are also moving back to bigger sport utility vehicles and full-size pickup trucks, and they are paying more for them.
I believe that lower oil prices, if sustained, will have a moderately good effect on the U.S. economy. With consumer confidence slipping in September, lower costs at the pump may encourage greater consumer spending by increasing their disposable income.
Falling oil prices will be good for U.S. consumers, who will now have more discretionary money to spend, and companies like Tapiture, which will benefit from increased consumer spending and a possible decrease in costs from our shipping partners.
Chief Operating Officer
In the short term, lower gasoline and oil prices will give the average American more disposable income. In theory, more disposable income for Americans is a good thing, especially around the holidays when luxury purchases are often made. In the long term, however, lower gas prices could mean lower margins on oil and gas production, and could have a negative effect on both the domestic energy and manufacturing industries as a whole.