The harmful effect of rising oil costs on the American economy is old news, but how much gas prices are affecting small, rural states like Mississippi is a new issue in the media spotlight.
A recent article in the New York Times shed new light on the gas crisis at hand by showing how some parts of the country, particularly in Mississippi, are hit harder by the price increase than more populated areas, such as New York City.
According to fuelgaugereport.com, the average cost of gas nation-wide is $3.95 per gallon, and Mississippigasprices.com reports the average cost of gas in Mississippi is $3.80 per gallon. The state has the seventh lowest average gas prices in the nation. So what’s the big deal?
Mississippi has very little to no public transportation. While there may be the occasional car pool here and shuttle there, the mass transportation system in the state is almost non-existent. Residents in large cities like NYC are able to offset fuel costs by taking the bus or using the subway system. In Mississippi, even the capitol city, Jackson, has no public transportation system, which means residents must drive their own vehicles and therefore use more gas.
Also, in areas such as the Delta region, jobs are scarce, which forces many people to drive 20 miles or more to their place of work. Because this is the poorest region of the state, it is also full of older and less fuel efficient vehicles. Even in more prosperous areas of the state, a long commute is still common.
Another big contributor to this issue is the average income of Mississippi residents is much lower than the national average. The cost of living in Mississippi is about 10 percent below the national average. For example, in Oxford, Miss., where I live, average home prices are about 25 percent lower than the national average at about $215,000 (http://retire.oxfordms.com/cost.html). Because the price of living is lower, so are the average salaries earned. This means that while Mississippians earn less income than most others in the nation, they still have to spend about the same amount of money on gas. In fact, the New York Times reported that while nationwide Americans are now spending about 4 percent of their income on gasoline, in the Mississippi Delta the average resident spends more than 13 percent.
The results of this problem are being seen. More and more restaurants are closing because people are eating out less to save gas. Farms are having a hard time maintaining their crops because of the gas and electricity their equipment must use. Stores are selling less, jobs requiring commutes are going unfilled. Apartments close to college campuses are in higher demand as college students look for ways to cut fuel costs. Everyone is being affected – young and old.