How are oil prices affecting the economy?

I need to know who, what, when , where and how....about the question '; How are oil prices affecting the economy?';How are oil prices affecting the economy?
Oil is necessary for (most) American survival. It runs the car, it fuels the car, it keeps mechanisms from rusting, it works as fuel for lighters and I believe it also has something to do with natural gas, but I'm not to sure about the last.





But most important is the car. How do your parents get to work? Car. How do you get to school? Car or Bus, and if you ride a bicycle, you still need to grease the chain. People can't just stop going to school or work (well you could, but then you'd live off of welfare and I'll assume you don't want that).





Because these are necessary, Americans MUST buy them to get to work and get paid. The problem is, when the oil prices rise so do gas prices, but you don't get a raise. So you spend more money on gas and less on wanted items like new shoes.





So a good percentage of the population can't buy the shoes, so the shoe stores go out of business. Because the shoes are out of business, more men and women are laid off work.





What happens to then? More people are laid off, less work, fewer houses, less money circulation. And in the end? The dollar's value decreases, which is VERY bad. So in all, the whole situation sucks.





It sucks worse though, when you discover exactly whose pockets that hard earned money falls into.How are oil prices affecting the economy?
its affects the economy be increasing the cost of travel for people, this in turns means they got to charge more to their customer or employer for traveling expenses or they have to cut back on spending period. A cut back on the public spending causes businesses to struggle cause there not earning the amount they use to. When this happens there share prices fall. A fall in the share prices of the top 100 companies in a country is a measure of its economy.
You need only look at your own living expenses.





If you were spending $100.00 per month for gas, last year, and, this year, your gas is $150 or $200, and you are earning the same wages, where in hell is the extra $50-100 coming from.





You have to stop buying anything that you can live without.


Some people already do that. They may cut groceries.





Some do not cut at all, and use credit. We know the result of that. A job is lost, bankruptcy ensues, etc.





Multply that by any number you choose.
Who: The whole world


What: The ability to transport all of the goods and food in the world


When: Now


Where: The whole world


How: Oil is the ';work force'; the world is depending on now. If you think about history the major dispute has been who will do the work. Slavery, indentured servents, serfs are examples of how people fought to make others their work force. Oil is the current work force, it does many of the jobs muscles used to do. Tilling fields, planting, hauling food, if we do not have oil we cannot do most of the current jobs that produce food in the world. Since we are dependent on oil to do all of those jobs any fluctuation in price will have a major affect on our economy. In our current economy oil is food.