If lowered fuel prices are a result of lower world market prices (either because of falling demand of major increases in supply) then it would be good for the short term economy. We have an economy that is based on cheap energy
But for the long term, as long as prices remain low, there will be little incentive to change the basic structure of the economy. That means:
- Global warming will get much worse more quickly
- If the low prices are only temporary, when prices do rise again, the shock will be all the more painful.
If you are going to lower fuel prices by using government subsidies, that will make things worse even in the short term - where is the government going to get that kind of money except by raising taxes? That means we all pay even if we are not wasting fuel.
And if you are going to lower fuel prices by government decree, then that is worst of all. Mexico and Canada will sell their fuel elsewhere, where they can get higher prices, and the U.S. will be stuck.
if the fuel is low then the basic goods will also be in low prices since the fuel that will be use for transporting is very low price..if theres an increase on fuel then the basic goods will also increase
all of them contribute.the biggest contributor is OPEC. They make certain how plenty to drill and placed out daily as a effect controlling furnish. Our call for is often transforming into and furnish needs to maintain as much as maintain fees sturdy. we matter on gas plenty that even gas fees that have trippled won't significatly impression call for. Even at $4.00 a gallon, we nevertheless want gas. in the event that they desperate to develop output via some million barrels an afternoon it would easily bring about a drop in fees. yet they do no longer in lots of cases try this. think of approximately it. OPEC would not want oil fees to drop too low. those international places make numerous funds via exporting oil. So, in essence, it fairly is a controversy of furnish and insist. Speculators contribute plenty as nicely.
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Short term or long term?
How are you going to lower fuel prices?
If lowered fuel prices are a result of lower world market prices (either because of falling demand of major increases in supply) then it would be good for the short term economy. We have an economy that is based on cheap energy
http://en.wikipedia.org/wiki/Energy_intensity
But for the long term, as long as prices remain low, there will be little incentive to change the basic structure of the economy. That means:
- Global warming will get much worse more quickly
- If the low prices are only temporary, when prices do rise again, the shock will be all the more painful.
If you are going to lower fuel prices by using government subsidies, that will make things worse even in the short term - where is the government going to get that kind of money except by raising taxes? That means we all pay even if we are not wasting fuel.
And if you are going to lower fuel prices by government decree, then that is worst of all. Mexico and Canada will sell their fuel elsewhere, where they can get higher prices, and the U.S. will be stuck.
if the fuel is low then the basic goods will also be in low prices since the fuel that will be use for transporting is very low price..if theres an increase on fuel then the basic goods will also increase
all of them contribute.the biggest contributor is OPEC. They make certain how plenty to drill and placed out daily as a effect controlling furnish. Our call for is often transforming into and furnish needs to maintain as much as maintain fees sturdy. we matter on gas plenty that even gas fees that have trippled won't significatly impression call for. Even at $4.00 a gallon, we nevertheless want gas. in the event that they desperate to develop output via some million barrels an afternoon it would easily bring about a drop in fees. yet they do no longer in lots of cases try this. think of approximately it. OPEC would not want oil fees to drop too low. those international places make numerous funds via exporting oil. So, in essence, it fairly is a controversy of furnish and insist. Speculators contribute plenty as nicely.