So, how 'bout those gas prices?

[Heald]

Yeah, the oil price affects far more people than drivers. Many small companies went out of business in the UK and one of the causes was the high price of oil leading to high supply costs. You notice it more when you're driving but living costs tend to go up when the price of oil goes up.

[Dark-San]

You notice it more when you're driving but living costs tend to go up when the price of oil goes up.

When living costs goes up, it is nearly impossible for them to come down to meet the declining oil prices as they are already fixed or 'peg' at a certain level. As a result when there is a recession together with a higher cost of living that refuses to come down, people will start tightening their pockets, which eventually lead to an even deeper recession and a longer recovery path.

It is all a chain cycle.