Posted on 01/17/2015 7:05:54 AM PST by thackney
No, I was referring to the headline.
Sorry, no offence intended.
I’m doubtful about the oil bust prompting a boom in other sectors of the economy.
But we’ll see.
I read a financial report last week that said for every job in the oil field, 2.8 jobs in other industries are created. CAT is one but there is a huge impact in other industries such as safety equipment, tires, heavy work clothing, steel for pipe and equipment, automobile and trucks, aviation and the list goes on and on.
Mr. Up/Down is a moron.
I’m not saying an oil bust will prompt other sectors to boom. I am saying that in order to minimize the effects of an oil bust other sectors of our economy must already be booming. It should be noted that with this administration many sectors “booming” is not in the cards. These people placed in charge have consciously done all they can to harm the United States whether politically, economically, culturally or socially.
It’s not an either or world. You can be happy to pay less at the pump AND hope that CAT finds a way to navigate this time without laying people off and feel bad for folks if they don’t. And feeling bad for folks negatively effected doesn’t mean insisting the price go back. I’ve helped put companies competing with my own out of business, I feel bad for the folks losing their jobs but I’m a-ok with winning.
I don’t see the drop in oil prices creating a great growth in the government side from this. Some sectors will grow as others shrink. In some locations one will be significantly larger than the other. Other areas will be reversed.
My point is, just in the past during drops in gasoline price, an overall economic boom is unlikely.
More often, the price drop is a symptom of falling demand from economies already shrinking. That is only a partial cause this time. North American supply also helped drive prices down.
But the drop in the industry will impact the country. We are the third largest oil producer because it is a large part of our economy.
That’s why we diversify. I have invested a significant portion of my money into oil stocks knowing that the price of oil fluctuates. This has happened before.
Thanks for the additional insight! FRegards
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