LOW OIL PRICES GOOD OR BAD

October 21, 2014

Oil-drumsHere’s why I’m not an economist. Thus morning I read an article that claims falling oil prices are an indication of an economy in trouble. I read the article not really understanding how they came up with this. It would seem to me that if oil prices drop and that’s passed on to the consumer (Which of course it’s not) then they resulting saving would result in more consumer spending. Not only that falling oil prices are a sign that there is plenty of oil which means a lot of the programs to rid ourselves of oil dependency are working. It seems to me the one losing money or might have to reduce their pay by a few million are oil companies. Now I know someone much smarter than me is going to claim this is a worldwide catastrophe. Bull shit: just because a corrupt regime in Africa or Venezuela might collapse because oil is the only thing they have going for them does not mean that a country like America which is succeeding, albeit slowly weaning itself away from oil dependency shouldn’t do anything stupid. I mean we already give big oil tax breaks and subsidies that do nothing but increase their ridicules profits. I know when I get into issues like that my view might seem to be over simplistic but I know if I’m saving money on food because transportation prices are dropping. I’m going to buy T bones instead of Hamburger. The same applies to anything else I might buy. I don’t think a slight reduction in profit for the oil companies should result in a negative but rather a positive effect to the economy. This is Flounder saying CIAO from Medellin, Colombia.

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