Dec
12

Bogus Boost

bogus-boostWhen oil prices started declining dramatically in late 2014, it was hoped that economic growth would quicken as households would suddenly have more discretionary income. While households did boost spending, it was offset almost dollar-for-dollar by reduced corporate investment. Now, oil prices are rising and while that will surely boost corporate investment, the decline in household spending will ensure that the net stimulus to the economy will be near zer0.
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