Price per barrel
Taxpayers are still leaning on payday loans and family aid to make it through the struggling economy. This week the AP released new data on oil prices that are lingering around $58 a barrel. Along with slow US retail sales and house values dipping, this is hampering the economic turnaround. Prices did begin at $50 a barrel earlier this month, spurring on some hope that the recession is coming to a close for the US, which is the world’s biggest oil consumer.
Unfortunately, retail sales fell and retail giants are showing a marked dip in sales as compared to last year this time. Macy’s Inc., a large department store chain, said their sales were similar and this past year has proven difficult. To add to the matter, home sales are still down. According to RealtyTrac data, foreclosures are up more than 30% since last year. In combination, these three vital aspects of the economy are proving detrimental to any sudden growth or improvement pending.
Gas prices to the consumer
Any heightened crude pricing could also be difficult for consumers to budget. Higher crude prices mean that gasoline prices are going up as well. If gas prices elevate considerably, any developing sign of economic recovery could be all but eliminated. Energy analyst with National Australian Bank Ben Westmore stated, “We shouldn’t expect the US consumer to be as strong as they’ve been over the last few years.”
If oil prices continue to increase
Westmore, along with other pundits, affirmed that oil will move in price, up and down, for at least the next few months. It won’t be until the end of the year that the recession is predicted to be over when prices will regulate. He said, “You have these two opposing forces…on the one hand, fundamentals and massive inventories that need to be drawn down weighing on prices, and on the other, market speculation coming back to equity and commodities, looking for a turning point.”
Consumers will have to buckle down and budget if they are to effectively handle the fluctuation in oil prices. Many are looking to nontraditional funding options as a way out. Claire Mondale of Pittsburg PA stated, “We need more options of facing our bills. We were always good at budgeting, but with the recession and job losses, we are lost.” One option that is helping many qualified customers are payday loans. These lenders are experiencing a boom in applicants due to the differing structure of these short term loans, as opposed to traditional bank lenders. It’s designed to be a short-term loan option and qualified consumers are taking advantage of the easy of payout and simple process.
As the recession ends
If oil prices are any indication, and they are a huge part of the economy, the recession will hang on longer. It is coming to an end, but not quite there yet. Most Americans will have to look to alternative funding options such as payday loans, family lending and pawning valuables to make ends meet. The hardest thing for many people is the uncertainty of when there will be true relief in the market. As one taxpayer anonymously said, “If we knew when things were going to get better, it might help. We might be a little less apprehensive when it comes to spending again and getting back into our normal way of life.” Sadly, no one knows when the recession will truly let go and allow the world to return to normal.
I certainly hope that nobody is under the impression that gas wasn’t ever going to return to $4 a gallon or more. It is, and it will probably rise from there. The thing is that out of the 10 largest corporations in the world, only 3 are not oil companies. It’s been established since long ago that our government is more or less on their payroll, no matter what they might say in campaign ads or in speeches or debates, they are – and that is BOTH parties. The only thing we CAN count on is that there’s a chance, perhaps a slim one, that the Big 3 will come up with electric cars that blow the roof off of the ones that they are currently starting to offer, and that within the next ten years, we’ll be able to afford decent electric cars that aren’t planned for obsolescence. It’s something we should be dealing with sooner rather than later. Also, consider that electric cars don’t pollute the way ICE vehicles do – think about it: we the consumers win as a result of lower upkeep costs, the environment wins because of lower emissions and pollution, domestic automakers win because they will be offering the best products (if they’re able to pull it off), and the only ones who lose are the oil companies, and haven’t they made enough money off of us by this point?