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    The Economy Added Jobs, but is it Ready for $4 or $5 a Gallon Gas?

    This story comes from the Yahoo! Contributor Network, where individuals publish their unique perspectives on some of the world’s most popular websites.
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    COMMENTARY | Things are looking up for the U.S. economy. A report from Reuters indicated the unemployment rate stands at a three-year low of 8.3 percent. The gain was a result of the economy adding 243,000 jobs, which would be almost a quarter of million badly needed jobs. A report from the Associated Press indicated the gains were spread across multiple industries, which is also great news. Of course, all the good news still has something of a weight to it as spring and summer approach and bring higher gasoline prices with it.

    Perhaps the biggest test for the recovering economy will be how well it handles the $4 and potentially $5 per gallon gasoline, as reported by ABC News. Higher gas prices do not just affect the typical commute to work or taking the kids to school. Everything is tied to the price of gas, basically because just about everything gets shipped, trucked, or delivered in some fashion.

    The ABC News report also mentions the price of oil could skyrocket to over $175 per barrel if Iran becomes disruptive, which could lead to even more ridiculous gas prices. Sure the economy has recovered some jobs, but a real test is on the way fairly soon. According to Reuters, January was the fifth month in a row that featured a declining unemployment rate.

    As long as business and industry do not overreact to what is anticipated to be the most expensive year for fuel ever, the positive trends have a chance to keep coming. Of course, there will be other challenges along the way to a full-fledged recovery, but the price at the pump is generally a deciding factor for a number of industries and the majority of consumers. Whether the economy is tough enough to withstand higher prices is a question that will be answered very soon.

     

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