Tyler Schipper, associate professor of economics at the University of St. Thomas College of Arts and Sciences, spoke with KSTP about the economic ripple effects of the conflict involving Iran and disruptions to global oil shipping. Schipper said the disruption is unlikely to cause a recession, though it may put additional pressure on everyday costs for consumers.
From the article:
Now, drivers are feeling the drain at the pump.
“We just did a little road trip from Minneapolis to Chicago – normally it would be about 70 bucks, we paid about $120 – we’re seeing an increase already,” one driver, who asked to remain nameless, told 5 EYEWITNESS NEWS.
“As people start to think, ‘Oh, this has gone on for a couple of weeks now, isn’t the end coming near?’ maybe, maybe not, but even if it does, I think people need to set their expectations for what after the Iran conflict looks like,” Tyler Schipper, associate economic professor at the University of St. Thomas, said.
Schipper says the sudden pain from higher pump prices could be felt in other products consumers buy.
“Think about this as a shock to the system, and that shock takes time to go through different supply chains,” Schipper added.
Schipper says the prices of other products that rely on trucks to be delivered to market or your home could go up, too.
“I don’t think this is the shock that puts the economy into recession, but it is the shock that makes the affordability crisis for lots of people worse,” Schipper said.
