While many are ecstatic about seeing gas prices as low as the $1.50s, $1.60s, and $1.70s, they fail to recognize the dangers of the plummeting numbers.

There are many factors leading to the drop of gas prices for the past several months, with the key reason, according to The New York Times, being that gas is in such a high demand in the United States.

In addition, oil rich countries are not holding back on natural production.  However, the United States has been finding new ways to retrieve its own oil and has not had to import it from other countries.

In particular, the Gulf of Mexico is an efficient way for the United States to get necessary energy sources like oil for gasoline.  With new and improved techniques, an example being fracking, attaining this resource is easier than ever.

Consumers benefit greatly with these low gas prices.  They are paying less for all products and services regarding gasoline and oil, lowering inflation.  Not only will vehicular transportation become cheaper, but air travel will as well.  Airports will be able to make money because they are paying less for the fuel that runs their planes.

However, while Americans are thriving with extra cash in their pockets, countries that depend on exporting gasoline to the United States will be greatly impacted.  There are many countries around the world that rely on resources, specifically oil, in order to sustain their economies.  With the United States, which is one of the largest recipients of foreign oil and gasoline, producing its own gasoline, other countries will suffer.   

According to Two Cents, while people are saving quite a bit of money on gas for the time being, it will eventually begin to negatively affect the gasoline and oil industries, thus causing deflation in the economy.  As prices fall, businesses will no longer be able to make a profit from their products.  Companies have to spend money on supplies for their businesses, and with these falling prices, they will not be able to make any sort of profit.  People will begin losing their jobs because businesses will no longer be able to afford their labor.  This will then affect the general public because without the businesses that provide them with oil and gasoline, demand will be high with low supplies, causing prices to skyrocket.

Having prices so low may seem great right now, however, many people do not realize what a huge effect the dropping costs have on both the economy and their wallets.  The United States is already $18 trillion in debt, and if these prices continue to fall, all of the country’s good fortune will be reversed and the United States will be farther in debt than ever before.