http://www.bbc.com/news/business-39365048
In the UK, retail sales have been going up, but the quickly increasing fuel prices have also affected consumers and indicate possibility of retail sales dropping.
Fuel prices were 18.7% higher than usual in February, and there was a sharp fall in retail sales around a similar time period. This indicates that the demand for goods has decreased as the price on necessities has increased. Ultimately, inflation has gone up from 1.8% in January to 2.3% in February.
As consumer spending decreases, the UK faces some danger of the entire economy slowing down. People have become much more cautious with their spending because of the higher fuel prices, and it could potentially lead to certain other businesses suffering as a result.
1. What do you think could be potential solutions to the issue of rising fuel prices?
2. How do you think this change in spending will affect other parts of daily life?
3. Do you think consumers will take out from more long-term savings in order to continue their current lifestyles or adapt slightly depending on prices of goods in the market?
I think a large change in spending like this will have large effects on the economy what they might be I don't know but this might not be good
ReplyDeleteI think a large change in spending will affect the whole economy and will probably end up slowing it down. I think this is just part of the economic cycle where its prosperity rises and falls so I feel that people will just try to wait it out and hope the future state of affairs will be better.
ReplyDeleteI think that he change in spending will definitely effect the entire economy and will slow it down so I see that there definitely is reason for concern. I I think that the only real solution would be to wait it out and see what happens, I agree with Nicole, it is a part of the economic cycle and there is not much we can do about it. I think that consumers will try to adapt slightly depending on the goods of the market
ReplyDeleteThe increase of gas prices will definitely hurt the economy. People do not have a choice to adjust their other spending habits: its the only thing to do. Not only are machines and engines dependent on gas, but the economy is too. I think the world should focus on trying to shift to renewable energy sources so the economy could be more independent.
ReplyDeleteI think that the change in spending will greatly affect the economy in a negative way, as it has in the past.
ReplyDeleteI do not believe that consumers will take out money from their long-term savings in order to continue their current lifestyles, i think its more likely for them to adapt to a more affordable lifestyle. Although it would be hard, people would learn to live a cost effective lifestyle.
ReplyDeletei think it will effect the economy in a negative way. I agree with Daniela that people will eventually just have to adapt to a more affordable lifestyle
ReplyDeleteI am not so sure of what solution could help decrease fuel prices because I am unaware of the cause for its increase. However, I believe that if nothing changes people will continue to prioritize their spending. People will adapt to their situation.
ReplyDeleteI think that a large change in spending tendencies will have an effect on the economy as a whole. In addition, I do not think consumers will take money from long term savings accounts in order to maintain their current lifestyles. Instead, people will have to adapt to a new lifestyle and difficult economy
ReplyDeleteThe thing that we must rely on now are trying to find new energy sources for cars such as batteries, or other types of fluid fuels. Since spending on fuel has arisen other parts or luxuries in life have been affected do to less spending and priorities over others.
ReplyDeleteI think it will effect the economy negatively, as said earlier I believe that people will adjust to a more affordable lifestyle.
ReplyDeletePeople will be spending less because of increase in prices. People will probably try adapting.
ReplyDeleteClassic example of BP oil screwing over America once more. Like just get your act in there jesus christ. Why does all the oil shortages have to be related to the rise in price that's pretty potato and it needs to stop. I think we're just going to keep losing the game until Elon Musk's Space X program comes out so I can get the heck out of this god forsaken planet and use that Imperialism thing to colonize Mars and be Kanye.
ReplyDeleteI think people will be effected by this because things will be more expensive. Because Fuel is more expensive people will not go out as much and will try to adapt to the new changes.
ReplyDeleteI think this will have a huge impact on the economy, possibly in the negative direction.
ReplyDeleteIf nothing really changes then people will prioritize the spending and make it seem if its the most important task to do. People will have to adapt to the lifestyle and have to to adapt as well to the bad economy
ReplyDeleteI think one solution to the rising oil prices is subsidizing some of the production. I think these changes in sales will affect the clothing industry greatly.
ReplyDeleteIt is very clear why prices would go up with oil prices because our infrastructure is so heavily relying on cars that use fossil fuels. In the future oil prices can only go up with minor fluctuations, the clear fix to this would be to switch to green energy that is renewable.
ReplyDeleteI think the reason the economy is bad is due to the change in spending. This situation is negatively affecting the economy as a whole as it is bringing it down.
ReplyDeleteI think that economy would be better with the increase of fuel prices for a higher price for the same amount in something that is bad for economy is good. It will also set a mark for people to want to turn to other environmental friendly uses of fuel.
ReplyDeleteOil prices, as many would think pertain to direct supply, has also much to do with supplier control. OPEC has a major role in global gas prices, and the only way to change prices now would be to get back to the situation of a year or two ago with drastically lowered prices due to Saudi and middle east oil reserves being pumped out constantly. Now, the coalition possibly wants to earn more of a profit, but such could be harmful globally as we see now.
ReplyDeletei think a potential solution could be to offer less fuel prices. They could also try and compete with the new prices.
ReplyDeleteI think that a minor solution could be to encourage citizens to take public transportation or to carpool, something that would use less gas. or you could also use an electric car to keep from using gas.
ReplyDeleteI agree with Hayden that if citizens used public transportation they would not need to worry about gas prices going up and be able to spend even more on goods in the UK. This would bring them back from the inflation.
ReplyDeleteIf gas prices influence the flow of a nation's overall economy, the goal should be to find an energy source that doesn't fluctuate so much. This is a good example of why renewable energy sources will decrease the magnitudes of the lows in the economy.
ReplyDeleteI think a large change in spending will affect the whole economy and will probably end up slowing it down. I think this is just part of the economic cycle where its prosperity rises and falls so I feel that people will just try to wait it out and hope the future state of affairs will be better.
ReplyDeleteI think the change in spending will definitely hurt the economy but to be honest, there are so many tourist that will make up for it, they'll do fine
ReplyDelete