RICHMOND, VA (WWBT) – Gas and grocery stores prices have soared this summer. But it looks as though relief is finally around the corner. Crude oil prices have dropped and as summer vacation ends, what you pay at the pump is expected to fall as much as 25 cents.
It's no different at the grocery store. The US is expected to churn out more staples like corn, wheat and soy, which will eventually drive prices lower. But it takes a few months for a commodity like corn to make its way down the production line and into a box of cereal, so that price dip is still a few months away.
Those are just small victories in trying times.
"We're in a tough long run mess," said David Brat.
David Brat is the Chair of Economics and business at Randolph Macon. He says what's most alarming is the latest report saying incomes nationwide are only going to grow 2.3% over the next 10 years.
"Our incomes are going down. The debt is the huge policy problems that we've got to fix. There's two ways to fix that. And one is either your taxes are going to go up or the services you receive are going to go down," said Brat.
Brat says the latest reports have our economic recovery lasting anywhere from 7 to 10 years.
"You've got to be making long run decisions. Firms have got to be making long run decisions, individuals families should be making long run decisions not just based on the news that's coming out every month," he said.
Some example of a long run decision for a family would be saving up for a house or for college or for long term goals. Don't make knee jerk reactions to the stock market.