By the end of November 2014, the price of oil had declined
about 40 percent since its peak back in the previous June.[1]
Expanding American fracking, a steady supply of oil from OPEC, and a weak
global economy are the major factors behind the trend. Saving $630 million on
gas as compared with what they had been paying in June, American drivers found
themselves with more disposable income.[2] Besides uses such as Christmas presents,
groceries, and clothing, more consumers were buying SUVs and Hummers in spite
of their low gas mileages. William Dudley, president of the Federal Reserve
Bank of New York, pointed to the benefits, saying “falling energy prices are
beneficial for our economy and should be a strong spur to consumer spending.”[3]
With OPEC countries and Russia hit disproportionately, the U.S. Government had
a geo-strategic interest in a further drop in the price of oil. It is no wonder
that a major disconnect existed between these benefits and a startling, albeit
largely hidden downside.
The full essay is at “Uninhabitable”
[1]
Steven Mufson, “As
Oil Prices Plunge, Wide-Ranging Effects for Consumers and the Global Economy,”
The Washington Post, December 1. 2014.
[2]
Ibid.
[3]
Ibid.