Libya's war and its effect on US Communities and Social Change Essay

Libyas war and its effect on US Communities and Social Change - Essay ExampleWhen I say economy, we all know that Libya is a member of the Organization of Petroleum Exporting Countries and is one of the largest suppliers of oil in the world and in the U.S. The recent conflict that happened and is happening there and the growing efforts to turn the present government had only hampered the normal flow of commerce and international trade. In the case of petroleum products for example, because of the war, it will take longer than usual, if not at all, to transport barrels of oil to desired destinations or buyer countries. As a result, freight is higher than normal. Retailers will then tag harms high full to recover cost. This is what is happening in the U.S. also. As a matter of fact, one barrel of oil has reached $ 140 on 21st of March this year which is a far leap from the $ 103 per barrel price prior to the conflict. Reports said this is a direct consequence of the war. It is a giv en formula that fluctuations in oil price also affect the prices of basic commodities. When this happens, inflation is simply at the doorstep of any economy like the U.S. When inflation occurs, the U.S. government will have to take between pursuing a fiscal or monetary policy to counter inflation.