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Why did the US economy continued to perform well despite the higher oil price and katrina disaster?
By Rose | February 29, 2008
Jasmin asked:
I know that the region itself, did not fare so well, but in terms of the entire US economy on the whole, why was there galloping economic growth, despite the Fed’s desire to tighten monetary conditions?
Bartholomew
I know that the region itself, did not fare so well, but in terms of the entire US economy on the whole, why was there galloping economic growth, despite the Fed’s desire to tighten monetary conditions?
Bartholomew
Topics: US Economy | 1 Comment »
March 3rd, 2008 at 4:28 am
Higher oil prices means the US population has to decrease savings and pay more for gasoline and / or;
Borrow more money on credit to pay for gasoline.
Problem is neither is long term sustainable… savings get used up, and credit eventually runs out when borrowers default…
Next thing you know consumers will be screaming for higher wages.. therefore wage inflation.
Does this help any?