In the past, falling oil prices have given a boost to the world economy, but recent forecasts for global growth have been ratcheted down, even as oil prices sink lower and lower. Does that mean the link between lower oil prices and growth has weakened?
Jason Bordoff, head the Center on Global Energy Policy at Columbia University, says there are still good reasons to believe cheap oil should heat up the world economy.
"Consumers have more money in their pockets when they're paying less at the pump," says Bordoff. "They spend that money on other things, which stimulates the economy."
Sara Johnson, director of global economic research at IHS, says the biggest gains goes to countries that import most or all of their oil — China, Japan, India, South Korea, Germany and France. The United states also remains a net importer of oil, despite huge increases in U.S. production from the shale oil boom.
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3 comments:
As oil prices go down and stay down, you watch as the Democrates put a tax on the gas to fund more of their give aways to the lazy unless pieces of crap that don't work!
Actually 1143 Paul Ryan and Obama have already proposed a $10 per barrel tax to be added for an international Green slush fund.
We in Salisbury are being price gouged
No way should the price go back up 20 cents in three days.
You know that gas had to be in storage tanks and bought at lower prices
This is the kind of thing that needs to be addressed and charges brought against those participating.
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