Economy+Effects+Students

** U .S.  Economy Effects Students   **
By: Chicken Noodle Soup (Angie)

The U.S. economy has been slowing down lately. Maybe you’ve noticed that your parents aren’t going out much, or that you’re not getting a lot of allowance. The reason for this is because certain things are starting to cost more, mostly gas. This means that you may not get to go out much on the weekends in order to save money. That pizza you bought a few months ago probably cost more today. This is because the companies are having to pay more to the food providers because of the high gas prices. Gas prices are on the rise due to several factors. First the demand for oil has increased sharply worldwide. Immerging economic powers such as China and India are in need of more energy to satisfies their new industries and the higher income of their citizens. Secondly the dollar has lost a lot of its value compared to other currencies for example In 2000 the dollar was equal to one Euro. Today the Euro is over $1. 60. Lastly Americans keep driving gas powered cars, SUVs and trucks.

One of the places where we are noticing the most raise in cost is the grocery store, for example a year ago a dozen eggs cost around $1.80 now they cost around $2.20, that’s $0.40 more. Doing the math if you shop for groceries every two weeks you’d be paying around $10.40 more for your eggs. Eggs aren't the only thing that’s on the rise there's milk, grains, and other foods.

The government approved a plan to jump start the economy. Basically every family in the U.S. will get between $300 and $1800 in the form of rebates. The government hopes that the families will use this money to buy different goods in order to improve the economy. Some economist are skeptical of this stimulus plan (the rebates) since, in their opinion, most of the families will not use this money to spend but to to pay off debts or will save the money they receive.

If your parents are cutting back on certain items or services, you could be more understanding of there situation, they are trying to get through this economic slow down. If you want to know more go to this [|link].