When gas prices go up at the pump individuals have less money (disposable income) to spend on other
goods and services. When gas prices drop individuals can spend money on
other goods and services. When an industry is
controlled by a few companies the lack of competition
(few sellers and many buyers) allows them to set market prices higher and make
higher profits than if there was competition. As a result individuals pay more money and have
less money to buy other goods and services. This impedes economic growth when
there is not enough competition in the US and global markets.
Combine this with the practice of companies paying low wages is a recipe for disaster. Who will have money
to buy additional goods and services?
Liquidity
One definition is "The ability of an asset to be converted into cash quickly
and without any price discount".
Liquid Market
A market with a high degree of liquidity occurs when there are a large
number of buyers and sellers.