I'm not as confident as you are of a positive outcome. In the US, will we be replacing high paying jobs in the energy sector with jobs for people to sell cheap junk from China? What about emerging nations which are building their fledgling economies? Will lower oil prices ruin their economies? Who will buy up the energy related companies when they go bust? Will the US consumer again end up in even deeper debt, buying vehicles and houses they can afford, but only because of lower fuel costs? What happens to the booming economies in oil-producing states? Will destabilized countries cause even more terrorism issues?
This is unchartered territory.
Let’s point out most countries are not dependent on oil revenue to balance their budgets and they’re not going to see much of a difference from tumbling oil prices.
Anti-American regimes like Iran, Venezuela and Russia are facing financial catastrophe. That will weaken their ability to create trouble for us for many years.
With cheaper prices and the benefits that come from deflation, life will be a lot easier for most people for awhile.
Agreed, and when you are in uncharted territory you need the creativity and innovation that allows you to take advantage of uncertainty and to set the course and direction for everyone else in the world. We used to be able to do this.
What you describe is white trash/ghetto/low info voter behavior.
A prudent person sees this as an opportunity to save up and prepare for the coming hard times.
So yeah, dumb people will go out and buy/lease a fancy/large car. Smart people will hunker down.
We all know hard times are coming.