Savings from cheap gas not getting spent freely

Ellie Bittourna: Gas prices now are down to as low as $2.50. This has created a lot of extra spending money for the nation, as much as $125 billion. Although, some are thinking that this is too good to be true. Even though we are found to have extra money, the economy is not expected to become much better. Confidence in our economy is still low due to increasing unemployment, the bad real estate market, and our financial problems around the world. Not only were high gas prices something that Americans worried about, many now worry about losing their jobs, keeping up with high mortgage payments, and our failing retirement funds. Along with falling gas prices, the amount paid for a barrel of oil has decreased as well. During the summer, a barrel of oil peaked to almost $120, now, it has fallen to around $66 a barrel. This may not solve the economic problem now a days though because in recent years, if Americans found extra money in their pocket they would go out and spend it almost immediately. Now that extra money is put into savings. Low gas prices may give some hope, but people are definitely more cautious with spending money. Most will stick to the transportation that they have recently opted to. This can be as broad as carpooling, taking the train or bus, riding mo-peds or motorcyles, or driving their cars.


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