Economy Is Better Prepared for Rising Gas Costs

According to an article by the New York Times, even though the gas prices are rising the economy may be better prepared for higher costs. Gas prices have risen by approximately a third of what they were a year ago, driven by fears of extended Middle East supply disruptions and increased demand. The spike might slow down the economic recovery but it isn't likely that it derails the economy unless prices rise a lot further.


One of the main reasons why we can say we are prepared for this is that we've learned that fuel-efficient cars are helpful in that sense. Hopefully prices will stop going up so that our economy can keep recovering the way it has.