A drop in oil prices should be beneficial to other industries in the American economy, particularly since a consequence of cheaper fuel is more disposable income. Families may be more willing to travel for the Christmas season, and there could be a slight uptick in the retail industry now that families will be able to spend less on gas.
As oil prices drop, consumers are getting a break at the gas pump. It might be a few pennies, but the economy is collectively being helped by the drop in oil prices. That extra cash that would have been put into the gas tank is now being spent on Christmas gifts and other essentials that are needed to live. This has been a welcomed surprise for consumers and the economy will benefit in the short term.
Of all the many factors involved in determining the state of the economy, the cost of fuel is easily one of the most important: with economic production dispersed across the country and across the world, transportation is a factor in the price of nearly every good imaginable. Hence, cheap fuel is definitely good for the economy.
When the price of oil drops, the price of gas follows. This will mean more money in the pocket of the consumer. Hopefully, that will translate into more money pumped into the economy through consumer spending. This could help retailers and manufacturing, as well as jus improve peoples spirits if they are not feeling the burden of the high price of gas.
With how close we are to energy independence the Saudis are trying to undermine the oil market crippling smaller U.S oil companies producing in America. In the long run it wont be successful is it helping our economy? No while many businesses are profiting others are still suffering. There is no extra money going into our economy this money would have gone into our economy anyway