Thursday, April 2, 2009
A Drop in the Price of Oil Is a Good Thing
Unless one were a speculator in oil betting that its cost would rise, the fall of the price of any commodity is a blessing to mankind. The fall in the price of oil will help spur the economic recovery by lowering our cost of living; that is, our gasoline bills will be lower, providing funds for other necessities or enabling us to pay of debt or increase savings. Furthermore, oil is a vital component of American industry, so its reduced price will help business recover, too. This is the normal way that economies heal themselves, not from gigantic governmental spending programs, bailouts of failed industries or running the central bank’s money printing presses at full tilt.