Could Lower Gasoline Prices Weaken the Economy?


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Digital Vision/Thinkstock(NEW YORK) — Gasoline prices across the U.S. continue to fall, which is great for consumers, especially at this time of year.

However, the oil industry and states that pump out the stuff are beginning to worry if prices come down too much more, it will wind up hurting the economy.

Speaking for the Colorado Petroleum Association, Stan Dempsey says capital expenditures are being scaled back because of lower prices for crude and if they fall below $50 a barrel, the next step is laying off workers.

Another one of the ramifications of less money for big oil is lower tax revenues for local governments.

On top of that, environmentalists are concerned that as people fill up their tanks, it just sends more pollution into the air.

Copyright 2014 ABC News Radio

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