Are much lower oil prices good news for the U.S. economy? Only if you like collapsing capital expenditures, rising unemployment and a potential financial implosion on Wall Street. Yes, lower gasoline prices are good news for the middle class. I certainly would rather pay two dollars for a gallon of gas than four dollars. But in order to have money to fill up your vehicle you have got to have an income first. And since the last recession, the energy sector has been the number one creator of good jobs in the U.S. economy by far. Barack Obama loves to stand up and take credit for the fact that the employment picture in this country has been improving slightly, but without the energy industry boom, unemployment would be through the roof. And now that the “energy boom” is rapidly becoming an “energy bust”, what will happen to the struggling U.S. economy as we head into 2015?
At the start of this article I mentioned that much lower oil prices would result in “collapsing capital expenditures”.
If you do not know what a “capital expenditure” is, the following is a definition that comes from Investopedia…
“Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment. This type of outlay is made by companies to maintain or increase the scope of their operations. These expenditures can include everything from repairing a roof to building a brand new factory.”
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The author is a quack.
ReplyDeleteMore lies. When gas was a dollar the economy flourished. At three dollars, stagnant and many businesses harmed by collusion of oil companies, i.e. price fixing. I hope the greedy major oil companies and those heavily invested in oil, drown and go out of business like the American companies unable to sustain the cost of oil products were forced to do.. Trying to convince Americans that being screwed over for years by gluttonous, greedy oil companies and paying to much, is good for them. This story is pure unadulterated B.S.. I hope they lose every dollar they stole and are forced to sell gasoline for a penny a gallon.
ReplyDeleteRich people just keep getting richer off the backs of thee poor and the middle class. The more we work. The more taxes after taxes we play. The more taxes we pay, the rich get richer. I can give a good sugar honey ice tea about “collapsing capital expenditures”. I'm enjoying the fact that gas prices are lower. I just wish the market would just crash so that All rich white males would began to jump off of balcony, roof tops and jump out of windows and start killing themselves. I'm sick of GREED.
ReplyDeleteStopped reading after the first completely made up claim that energy is the leading driver for employment. Hilarious how author's like this feel it's OK to simply make up facts.
ReplyDeleteBS lower gas is good for all.
ReplyDeleteGas stations will accept tips if the person buying gas has a problem with low gas prices.
ReplyDeleteAmerica has built the nightmare of the middle east with US oil dollars. So much better if we could just live on the oil we produce and starve that part of the world back into the middle ages. No more imports period.
ReplyDelete1:37 You are right.
ReplyDelete