From my most recent NRO article: “The cut in wholesale oil prices from $100 a barrel to the present (approximately) $66 a barrel amounts to a $125 billion tax cut for the American public, and has vitally assisted in pushing corporate profits to an expected total of $1.87 trillion, or 10.3 percent of GDP. This is good for almost everyone. . . . Most of the financial press has been lamenting the decline in the oil price as indicative of slowing growth and spreading deflation, but as it is both a tax cut and a price cut in the most vital commodity except for food, it is a spur to profitability, which must lead to some combination of increased saving, investment, and capital spending. Of course, it will not be a panacea. ”
Whether you agree or disagree, your comments are, as always, most welcome.