The Reason for High Gas Prices
One night, I was surfing the internet when I came across a picture showing a gas station with the gas prices on a sign sitting in front of it. The gas sign said that the price for regular was "an arm", the price for plus was "a leg" and the price for premium was a "first born". As I marveled over what Photoshop can do, I began to think about these high gas prices and what is causing them. Everyone talks about, complains about, and jokes about the high gas prices, but no one does anything about them. Many people told me what they thought was causing the high gas prices, but I was always wondering what really is causing them. Is it corporate greed or is it supply and demand? It is actually a combination of both corporate greed and supply and demand; the solution to the high gas prices is to break away from using fossil fuels by supporting alternative fueled cars. High gas prices are a major problem because of the effect it has on the economy. A recent article in Business News states, "If prices were to remain at these higher levels by the summer driving season, it would mean Americans would spend $5 billion more a month than they did last summer on gasoline. Economists say this will reduce economic activity as Americans will have less money to buy ice cream or go to the movies" (Energy Information). Right now our economy is not doing well and these gas prices are hurting it even more. Think of all that money Americans would spend else where if they didn 't have to spend it at the pump. Mark Zandi, chief economist at Economy.com, confirms this by saying, "Consumers are now responding differently this year than they did last year when prices were high. They are fundamentally changing their spending. I think we 'll begin to see the effects on spending in the second quarter" (Energy Information). Why has there been a sudden increase in gas prices? I was wondering about that myself and it appears to be because the world is demanding more gas then
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