Economist schools Trump: Cheap oil = lower GDP

[Ted Frazier]

Trump recently thanked Saudi Arabia, which he sees as being key in lowering oil prices.
But as Ian Shepherdson (Chief economist in Pantheon Macroeconomics) noted, this is actually not a good thing for the US GDP:

Oil prices and US GDP growth are now positively correlated. The U.S. now reacts to lower oil prices like Saudi Arabia, ie, badly. This is not how it used to be; shale has changed everything. Someone should tell @realDonaldTrump

Ian Shepherdson on Twitter

OH BULL CRAP.

...... so smart, they have become idiots.

Really? So in the 1990s when oil prices crashed, and Bill Clinton, and his economists, were all talking about how low oil prices helped the economy, they were all lying? Or were they truthful until Trump was in office, and now it is magically wrong?

You people can't go a single day without contradicting yourselves. Endless stupidity from the left.

The economist noted this is a recent phenomenon, imbecile.
Read OP. The opposite was true in the 1990s.

 

[Pilot1]

What is the Saudi economy almost solely based upon? Is the U.S. economy based on one commodity, or industry?

 

[Harpy Eagle]

I guess the graph in the link in the OP was too confusing for the Trump sheep.

 

[Harpy Eagle]

Trump recently thanked Saudi Arabia, which he sees as being key in lowering oil prices.
But as Ian Shepherdson (Chief economist in Pantheon Macroeconomics) noted, this is actually not a good thing for the US GDP:

Oil prices and US GDP growth are now positively correlated. The U.S. now reacts to lower oil prices like Saudi Arabia, ie, badly. This is not how it used to be; shale has changed everything. Someone should tell @realDonaldTrump

Ian Shepherdson on Twitter

OH BULL CRAP.

...... so smart, they have become idiots.

Really? So in the 1990s when oil prices crashed, and Bill Clinton, and his economists, were all talking about how low oil prices helped the economy, they were all lying? Or were they truthful until Trump was in office, and now it is magically wrong?

You people can't go a single day without contradicting yourselves. Endless stupidity from the left.

The economist noted this is a recent phenomenon, imbecile.
Read OP. The opposite was true in the 1990s.

It is due to the growth of the shale sector, which is hit when the oil prices go down.

 

[Ted Frazier]

I guess the graph in the link in the OP was too confusing for the Trump sheep.

I guess the graph in the link in the OP was too confusing for the Trump sheep.

I think they first learned there is a graph just nowt from you.
By the way, here is Fortune magazine explaining the same thing. That’s three sources that have used today :

“Shale oil is the reason the U.S. has hit the top of global oil production. But the oil can be costly to produce compared to other sources. When prices drop too low, pulling more out of the ground becomes uneconomical. Producers can’t sell it for enough to cover their costs and make a profit.

That will mean a reduction in capital expenditures, which means a lower contribution to GDP.”
Lower Gas Prices May Cause an Economic Hit

 

[Ted Frazier]

The economist is a moron, did he attend a liberal run school?

It looks like the Wall Street Journal attended liberal school, too:

The effect of oil prices on the U.S. economy used to be straightforward: Higher was bad. Yet between 2014 and early 2016, as oil collapsed, growth slowed sharply. Since then oil has doubled, yet the economy has accelerated.

America’s Emerging Petro Economy Flips the Impact of Oil

 

[bripat9643]

Trump recently thanked Saudi Arabia, which he sees as being key in lowering oil prices.
But as Ian Shepherdson (Chief economist in Pantheon Macroeconomics) noted, this is actually not a good thing for the US GDP:

Oil prices and US GDP growth are now positively correlated. The U.S. now reacts to lower oil prices like Saudi Arabia, ie, badly. This is not how it used to be; shale has changed everything. Someone should tell @realDonaldTrump

Ian Shepherdson on Twitter

The guy is a kook. Cheap energy is always good for every consumer and every business that uses energy.

 

[OKTexas]

Trump recently thanked Saudi Arabia, which he sees as being key in lowering oil prices.
But as Ian Shepherdson (Chief economist in Pantheon Macroeconomics) noted, this is actually not a good thing for the US GDP:

Oil prices and US GDP growth are now positively correlated. The U.S. now reacts to lower oil prices like Saudi Arabia, ie, badly. This is not how it used to be; shale has changed everything. Someone should tell @realDonaldTrump

Ian Shepherdson on Twitter

Someone is clueless. The US imports about 34 million barrels a month, if the base price falls, that doesn't mean us processors, pipeline operators or gas stations make any less. Their profits are built in and pretty much constant. It does have some impact on US producers if the price stays down too long, but increased consumption can offset some of that.

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