Wednesday, August 09, 2006

Gas Prices Drain Local Economy

Crains Chicago Business's Paul Merrion wrote a great column in Crains this week about the effect the raising gas prices are having on our local (and national economy).

They conducted a study which shows that for every dollar a gallon of gas goes up job losses almost double!

36,260 jobless when gas was $2/gallon
61,000 jobless at $3/gallon
and a projected
102,420 at $4/gallon.

It broke down to over $5 billion removed from our local economy and spent on gas instead. The powerful impact of microeconomics has always fascinated me, but these numbers are staggering.

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