After years of rising gasoline prices Idahoans are getting a reprieve, but as the state further integrates into the global economy, the ramifications of falling – or rising – oil prices become more complicated.
What is Driving the Drop in Prices?
Over the past four years global oil production has grown from roughly 85 million barrels per day to 90.1 million, largely due to the significant technological advancements in hydraulic fracturing – fracking. This has allowed producers to extract oil from shale formations previously thought unviable.
Recessions are natural in any economy and are commonly defined as two or more successive quarters of negative economic growth. Since the end of WWII, the United States has experienced 10 recessions – each with its own unique impact.
And in December 2007, the U.S. entered a recession unlike any other.
The Great Recession
After six consecutive years of significant economic growth – largely spurred by a hyper-inflated housing market – the U.S. economy crashed into an 18-month recession. Worthy of its name, the Great Recession was the worst U.S. financial crisis since World War II. While the foibles of those who played the housing market are well documented, what was it that made the Great Recession so bad?
In recent years, the manufacturing industry in the United States has been a skeleton of what it once was. As some manufacturers outsourced work to foreign countries in pursuit of cost savings, others simply struggled to stay alive, unable to keep up with increasing competition in an ever-expanding global economy.
From 2000 to 2010, manufacturing posted net job losses each year. Manufacturing jobs decreased 30 percent, losing more than 5 million jobs over the decade. Regardless of the cause, once proud cities like Detroit are left desolate by the relative death of the industry.
Information provided in this article has been gathered from various sources throughout the state, including weekly and daily newspapers, television and other media.
- A recent report from the finance website Wallet Hub says Idaho is the third most-generous state – tied with Kansas, according to Boise State Public Radio. Utah and South Dakota topped the list. Using IRS statistics and survey data for the report for the Chronicle of Philanthropy, Wallet Hub looked at volunteer time and money donated. Idahoans’ high rate of giving was attributed in part to the state’s large Mormon population. About a quarter of Idahoans identify as members of the Church of Jesus Christ of Latter-day Saints. Giving money to a church counts as a charitable contribution in most studies. A University of Pennsylvania study found that 88 percent of active Mormons report giving 10 percent of their income to the church. That’s higher than any other religion in America.