With gas prices set to rise beyond the $4 mark across the US, citizens are finding themselves trapped within a vicious cycle of economic hardship. The current price, which is based on the inflated cost of oil, has already risen to its highest point since July 2008, and economists are predicting that that $4 price for gas may take hold nationwide throughout July and August. This, in line with high unemployment and increased cuts in public expenditure, is creating the likely prospect of the nations economy grinding to a shuddering halt.

The Factors in Economic Growth

There are two significant factors which drive capitalist economic growth. The first of these is enterprise, and the investment in businesses that to allows them to expand their operations and hire new staff. This then follows in to the second factor, which is consumer activity and the revenue that citizens reinvest into the economy. By itself, this is the single most important influence on the financial growth of the US, but it is in part reliant on an environment where people are able to work and earn a regular salary.

In an environment where both independent enterprise and consumer spending is hindered, it creates a distinct cycle of economic hardship. This is debilitating for both the federal government and private sector growth, but also has a deep and perpetual impact on the day to day existence of citizens. As is typical with these types of circumstance, one factor often influences the other, so as long as citizens are unable to find employment and earn any semblence of disposable income, so too they are forced to reduce their levels of expenditure and tighten their financial belts.

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