The prices of gas in America have been above three dollars for quite some time. Recently gas prices have been dropping rapidly across the country. This seems to be very nice, but only for a short time.

This year’s Christmas spending’s were boosted by the lowering of gas prices. Now that Americans aren’t having to spend a large majority of their money on gas, they can spend it on more simple things like extra groceries or better Christmas gifts. The long term effects of low gas prices can cause job loss in the oil industry and inflated prices on average American consumer goods, and a plummet in sales for fuel efficient automobiles and hybrids.

When gas prices are lowered, it makes the need for fuel efficient and hybrid automobiles not seem as relevant. Overtime this causes the sell of these automobiles to drop if the gas prices stay as low as they currently are. When the sells start to drop of these automobiles the car companies don’t get the money they need which can cause layoffs, lower paychecks, or even the closing of the company.

In the Austin area, gas prices have been as low as $1.50 depending on which gas station people visit. The gas prices continue to drop and there is no sign of it rising so far. Around the nation gas prices have even been lowered to below a dollar in certain states.

“Personally the gas prices don’t affect me as much as some other people who are maybe on a fixed income,” theatre teacher Linda Major said. “Although I do say that it makes it more pleasurable to drive to Dallas to see the grand kids when it doesn’t cost as much.”

There has been discussions in some of the state governments about putting a tax on gas which would raise the prices. A lot of consumers are against this as it would raise the gas prices to around three dollars once again. These discussions are being made, but the tax has not yet been accepted; still the tax is gaining momentum.

Some people are very happy about these lowered gas prices, but others aren’t.

The President of Russia Vladimir Putin accused The Saudi Government of lowering gas prices as an act of economic terrorism. He did this because Russia’s economy is directly effected by the price of oil. When the prices of oil drop, so does Russia’s economy.

“The US and Saudi Arabia, which with Russia are the world’s three biggest crude producers,” Russian President Vladimir Putin said, according to yalibnan.com, “may be colluding to push down the price of oil.”

The negative’s of lowering gas prices are high. Nobody knows what the outcome of this shocking drop in these prices could be. It may last for 10 years and the economy may adapt around it, or it could be a big hit to the American, Russian, and world economy.