Gas Gone Wild!

Gas prices– I hear the sighs of exasperation just typing those words. They’re ridiculously high, but how deeply are they affecting the economy? According to Dr. Michael Nieswiadomy of the UNT economics department, not as much as we all think.

“People think that because gas prices are going up, the economy is going down, and it’s simply not true. The gas prices affect less than 1% of the total GNP. There are many factors that make the economy what it is.”

He said that with the rise in demand for oil combined with the steady supply, the prices will continue to climb.

“More and more drivers around the world need the fuel for their cars. We’ll have to look for new ways to get around if we want the prices to go down anytime soon. Otherwise the demand is high and the supply is relatively low,” he said.

But it seems people have found new ways to keep the gas prices from affecting them. Students at the University of North Texas tell what they do to keep the gas from affecting them.

“It costs about $70 to fill [my truck] up. That’s a lot—but I don’t go home much. But that’s why I don’t,” said sophomore Jack Still. His family lives in Austin—more than 200 miles from his home here in Denton.

He’s not the only one. Senior Anna Miller says her fiancé drives from College Station almost every weekend to see her. What does it cost per month? I won’t make you do the math—but here are the numbers—truck=18 miles/gallon, distance= roughly 500 miles from College Station to Denton and back, gas=$3.47— it comes to a grand total of $385 every month! That’s as much as many college kids’ rent.

“We bought bikes. We try to ride them everywhere. The only time I drive is when I go to work.”

And even though both Miller and Still said they don’t shop as frequently as they used to, retail stores are doing pretty well—that’s according to the National Retail Federation. The reports show that online retailers continue to do well in this struggling economy.

“From higher shipping costs to changes in consumer shopping habits, online retailers are not immune to the current economic climate,” said Scott Silverman, executive director of Shop.org. “But the fact that online sales will increase substantially this year demonstrates the resilience of the channel and is a testament to the value and convenience most customers find when shopping online.”

“I don’t like to buy things anymore…unless it’s food… we try not to eat out too much. It’s just too expensive,” said Miller.

Gas is expected to go up another fifty-cents this summer—and to that, Dr. Nieswiadomy says, “Just don’t be shocked. I wouldn’t be shocked if it rose 20% overnight.”