Gas prices at the pump in recent weeks have been some of the lowest our country has seen in years. For drivers who are overextended financially, these lower prices are a welcome break to the days when gas was inching up towards $5.00 a gallon. But lower gas prices are not good news for everyone, and for those that make their living in the oil and gas industry, the financial woes may be just beginning. Several companies have had to resort to massive companywide layoffs recently, and this does not bode well for the economy.
Corporate layoffs are not a new or novel way for companies to try and save money before things turn from bad to worse, but when these layoffs happen the effect is far reaching. One of the most recent layoffs was at Devon Energy in Oklahoma City. The work force at the oil and gas giant has nearly been cut in half, and the impact of this act could mean the following:
- A rise in unemployment, which leads to a larger number of consumers being unable to pay their monthly bills.
- A decrease in consumer spending, which impacts workers from all sectors. When goods and services are not being purchased because a large portion of the population is unemployed, retailers and other service providers eventually begin to feel the financial pinch as well.
- The stock for these companies will continue to drop, which means the companies themselves may end up broke. If this happens, it makes any kind of meaningful rebound all the more difficult.
It is important to keep the overall economic picture in mind when thinking about how losses at big companies impact society as a whole. While it is no secret those at the top made astronomical sums of money, and sometimes at the expense of lower paid workers or the public, when large companies fold the ripple effect can touch nearly anyone. If you are experiencing financial difficulty, whatever the cause, consider bankruptcy as a solution to your financial pains. Contact our office today to speak with a knowledgeable bankruptcy and debt management attorney, and learn how bankruptcy or another debt management plan can help you.
For more information about bankruptcy, contact us at www.DsouzaLegalGroup.com. Our approach is individually tailored to meet your needs, so you can reach your financial goals.