Cheap Gas!!

Dr. Jones wrote:Directed by members of government?  Ha!  That would imply that they had a functioning government to begin with. The same people that run the oil fields just happen to run the government as well.  

Here's an interesting read on the benefits of lower gas prices including, increased discretionary spending, job creation,  a constriction on inflation, and of course, an increased GDP.

It also address your concerns of a simple shift in revenue.

Enjoy

http://www.marketwatch.com/story/households-could-save-1100-from-falling-gas-prices-2014-12-01

Gomezz Adddams wrote:

Dr. Jones wrote:Directed by members of government?  Ha!  That would imply that they had a functioning government to begin with. The same people that run the oil fields just happen to run the government as well.  

Here's an interesting read on the benefits of lower gas prices including, increased discretionary spending, job creation,  a constriction on inflation, and of course, an increased GDP.

It also address your concerns of a simple shift in revenue.

Enjoy

http://www.marketwatch.com/story/households-could-save-1100-from-falling-gas-prices-2014-12-01

What you don't think Saudi Arabia, Iran and Kuwait have functionaing governments? Think again. Of the top 5 OPEC countries only Iraq has a government not solidly in control of it's territory. It is estimated that only 7% of the worlds oil and gas reserves are under private ownership/production. Unfortunately the people who run the governments think they can also run industry. Ahh, you just gotta love Socialism.

These oil rich countries don't have the "we the people" type of government that we are accustomed to, or that I would consider functional.  Their leadership decisions are based souly on their one and only source of income, just as any business would be.  As far as your strawman socialism deflection, it also falls victim to the same argument.

I'm always suspicious of articles that use the false analogy that compares a drop in prices to a tax cut from the government. This is not an injection of new money into the economy. There is no new wealth being created although countries that are net importers of oil will see a small increase in GDP. This effect is somewhat mitigated in the US because a stronger dollar will make our exports more expensive and a lessening impact of energy sectors on the US economy due to it making up a smaller percentage of the economy as a percentage of GDP. Again don't look for any major swings in US GDP due to the drop in gas prices. For our economy it's going to be a wash.

I like your first statement.  If that is too much for you to wrap your head around, then I would suggest you Google it and read one of several articles that says the exact same thing, but puts it in a context that is hopefully more pleasing to your palate . Of course it isn't new money.  It's a redistribution of money to those who would actually use it to help improve the economy.  I tried to find some literature to help explain your take in this and found one interesting article.  It claimed, as you do, that cheaper gas would not help the economy.  Why?  Their take on it was that the first thing people would do was replenish their savings.  Money put into savings does nothing for the economy, and they felt it would be a while before people started to spend their new found wealth.  Again proving my point about the necessity of liquidity.  I would really like to read a few articles supporting your opinion in this matter.
http://triblive.com/mobile/7212767-96/prices-gas-gasoline