How Low Oil Prices Failed To Stimulate The Economy

Jon Alternative Media, Blogosphere, Economy, Energy, Fiscal Policies, Market Commentary

The 2014 plunge in oil prices was initially hoped to provide stimulus to the U. S. economy, with the Fed arguing that the average household would save $700 in fuel costs. A new paper from the Brookings Institution suggests otherwise.
While higher discretionary income due to lower oil prices boosted consumer spending by 0.61 percent, the collapse in oil drilling reduced total investment by 0.62 percent, almost perfectly offsetting the benefits, according to the report.

This post was published at Zero Hedge on Sep 19, 2016.