Unlike Russia, Venezuela and the Opecker Companies, we don’t export oil as part of our GDP. Actually, when we import oil, our economy can be hurt.
Go to the link below and see how lower gas prices are helping the average American and how lower prices will not be a negative in the short and long run.
The impact is especially significant for low- and middle-income Americans, who have been largely left behind by the anemic economic recovery that began in the middle of 2009. Even as the job market has improved, most workers have received only modest wage increases. Median income remains roughly 5 percent below the peak it hit in 2007.
Of course, the shifting energy picture will create losers as well as winners. Falling crude prices could eventually slow surging domestic oil and gas production, dimming one of the major economic bright spots of recent years. But while a further decline in oil prices would make it harder to tap the most costly oil shale deposits and deep offshore reserves, economists say the overall momentum will more than compensate for any potential slowdown in the energy patch.
“When oil prices fall, the benefit to consumers outweighs the loss to producers,” said Dean Maki, chief United States economist at Barclays. “Investment in oil and gas production is still less than 1 percent of gross domestic product. Consumer spending is 68.5 percent of G.D.P.”
Even in Texas, the estimated loss of 15,000 energy production jobs that might occur if lower crude prices persist would be offset by increased employment in sectors like refining and transportation, as well as in businesses that rely on consumer spending, according to Mine K. Yucel, senior vice president and director of research at the Federal Reserve Bank of Dallas.
“There may be some slowing, but it’s not going to be dramatic if we stay around $80,” Ms. Yucel said. “If the price goes below $70, we will probably see a tapering off of production.”
In the meantime, the most economically fragile part of the population is already feeling some relief, which is likely to lead to extra spending on a variety of other goods and services.
Why are you portraying the NYSlimes as a legitimate news source?