So here’s something you don’t get to read very often. Good news. Oil got cheaper. Therefore, so have it’s derivative products. The chart below from GasBuddy.com offers us some details.
In response to us finally catching a break, Chicken Little told Goosey-Loosey and Turkey-Lurkey the following:
Energy-company stocks are declining, oil deflation is an economic threat, the Fed might raise rates much later than expected, OPEC is dissolving, shale companies are going bankrupt, Russia is going bankrupt(!),
Oh, and it gets even !WORSE! Dmitry Orlov call your office. “Could it be that the plunge in oil prices isn’t just attributable to a supply glut?” asks the frightened and timorous mouse at Business Insider? “Wither Nigeria?*” they ask with awe and fear in their trembling voices…
Now don’t let just me be the voice of considered Neo-Reaction to this barrage of epistemological owl-poop masquerading as in-depth analysis. It’s not the sky that’s falling. It’s the price of oil per BBL. So let’s ask a question here. Would rather pay more for every mile of interstate that you and your family are required to drive every day or would you rather pay less? I’m really not trying to stump the chump here.
Let’s try this scenario. It’s been years since you’ve gotten a raise and your costs are getting steeper. Would you rather ask the boss for a pay raise if the company is paying more for its flow capital and can’t afford a greater investment or when the profit needle is pegging the meter due to cheap and abundant energy? Again, this ain’t rocket science. Lord Keynes and John Stuart Mill wouldn’t have to scratch their noggins.
Lower oil prices are an unalloyed good for the American People. They are particularly beneficent since our domestic production of crude oil has been a major driving force. We have been beleaguered with rising costs of living (regardless of the CPI reading) and non-existent growth. Our workforce participation rate would make 90’s Era Stereotypical Slackers look industrious by comparison. The lower and middle classes in America have been steadily going to rot since at least 2007 and some would argue since the Mid-1970’s. This is the break we have been waiting for.
So ignore the foolish bemoaning of your entire existence becoming more affordable. When Senator Ernest Foghorn Hollings once complained “there’s too much consuming going on” somebody should have given the man a breathalyzer test. Let the rising tide lift all boats. Let those boats be powered by American Crude derivatives. Frack the naysayers. This is the best economic news America has had in years.
*-Bad pun. I admit it.