Lower energy prices represent an unmitigated good for consumers, do they not? Everything we buy. Food, transportation, packaging, plastics, paint, chemicals, medicines, electricity, the list is near endless of things made cheaper by lowered energy costs.
I understand the devastation done to the oil patch, and down-stream suppliers too. It’s a shame. But if the question is what is the net benefit to the economy, there are 360 million consumers who benefit in a small way, and far fewer in the economy that suffer in a great way. Net benefit. Period.
And every gallon we pump here is one less gallon we need from the Arabs.
“Lower energy prices represent an unmitigated good for consumers, do they not? “
Well, I haven’t seen the prices of finished goods (plastics, paints, processed oils, and so on) exactly tumble. When prices return to a “new normal” (which I’m guessing will be around $60-70), there will be big-time rampant inflation as the suppliers of those things pass on “increased energy/oil costs”...
I think that new normal will be achieved by fracking essentially putting a “cap” on oil prices. Oil goes up, more fracking comes on line. This might be stable for quite some time.
Period. End of story. Done. Finished. You are correct. Stated more simply, however, paying more is NEVER EVER EVER EVER EVER EVER a good thing.
So the obvious question is why haven’t prices on everything dropped?