WASHINGTON — It has been a truism of the American economy for decades: When oil prices rise, the economy suffers; when they fall, growth improves.
But the decline of oil prices over the last two years has failed to deliver the usual economic benefits.
As oil prices have fallen to levels not seen since 2003 — sagging below $27 a barrel on Wednesday before rebounding to about $30 on Thursday — many experts now say they do not expect lower prices to bolster the domestic economy significantly in 2016.
“We got this wrong,” John C. Williams, president of the Federal Reserve Bank of San Francisco, told an audience in Santa Barbara, Calif., this month.
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WNU Editor: Too much debt, too many taxes, fears on the economy .... there are a hundred and one reasons why the economy is not improving .... but no one (aside from those who are employed in the energy business) are displeased with these low prices.
4 comments:
I would disagree, ask the subsidies child care in Quebec how this is working for them. If you don't get those transfer payments from Alberta you're not a bunch of happy campers anymore.
The world's economy is so in the tank that the help of lower oil prices is too minor a change.
Excellent point Anon about Quebec. Living in Quebec I have been saying for years to my fellow Quebecers that we are lucky to be a part of Canada .... the transfer of wealth from the rest of Canada has helped give us a good standard of life. Now .... with the money drying up .... we are going to feel the pinch.
Low oil and gas prices cause a shift to gas and oil from coal.
Coal producers are under attack anyway by Obolo.
But coal producers are not the only ones hurt. Their suppliers are also hurt and some of them employ a lot of people.
Obozo does not look at the secondary and tertiary effects of his war on coal.
Obummer is not as smart as FDR. When FDR went to war against the axis, he stopped is war against business. Of course FDR was only physically handicapped.
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