Recently Saudi Arabians have been making lines at their local gas stations to stock up before the prices skyrocket almost 50%. Everyone has been focused on the recent flare up with Iran, but many locals are concerned with major inflation and tax changes at home due to dropping oil prices. Oil accounts for almost 75% of their country's income and with the prices dropping drastically they are losing money much faster than they can make it. Gas prices are expected to hike 50% along with water and electricity prices. To save money the government may also cut back on many of the perks the population receives from the government. Some of the perks are, Heavily subsidized gas, (It used to be 16 cents a liter. Now it's gone up to 24 cents, free health care, free schooling, subsidized water and electricity, no income tax, public pensions, nearly 90% of Saudis are employed by the government, often higher pay for government jobs than private sector ones, unemployment benefits, a "development fund" that provides interest-free loans to help families buy homes and start businesses
I think that this might affect us over here in the U.S, because we get a lot of oil from this area and it might change our prices over here.
See full story here.
Questions:
1. Do you think that it will change anything in the U.S. and how?
2. How much do you think it will affect the Saudi Arabian families daily lives?
Replies
I do think that it might change a few things in the U.S., like gas prices. I think that it will majorly affect the Saudi Arabian families in many different ways. I think money will obviously affect them, which will change their daily lives greatly, from the amount of food and water to the electricity and daily needed amenities they are able to afford.
I think that it will change definitely the price of gas in the U.S. by either the price going up or the price of gas going down. I think that the Saudi Arabian families will not have enough money to by food, water, or any other necessities that they will need.
Yes, how much oil we have. By a lot, I feel the families who have people working in this area will not get as much money as they would have.
I think it will change the prices of oil in the International market. I think that the everyday life of these Saudi's will be impacted greatly. imagine if Americas oil prices rose by 50%. We would definitely into some sort of depression or economic disaster. I think that these families will lose lots of benefits from there government jobs.
I think that it will change their lives, but not too much because its still much cheaper there than here.