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Do you think the economic effect of the spill only a localized problem for the gulf economy, or can it have a ripple effect on the national economy, creating a double dip recession?
Do you think the economic effect of the spill only a localized problem for the gulf economy, or can it have a ripple effect on the national economy, creating a double dip recession?
While the financial crisis may have been arrested and the economy stopped deteriorating at a visible pace, indeed the recovery, if any, has not been broadly based.
From a narrow perspective, you'd have to measure whether losses to the Gulf state economies are offset by containment and clean-up efforts which add to GDP.
From a broader perspective internationally, due to global sluggishness, the price of oil globally is at lower levels than about two months ago, so the loss from the blowout seems to be, well, a drop in the ocean, as it were.
From a broader perspective nationally, at least psychologically it is a further blow to an already depressed nation.
Though under different circumstances, I have not perceived the country so depressed psychologically since the late 1970s.
Key here is visible deterioration in the economy, and the blow from the blowout is visible.
Far more likely to hurt local tourism,imports of seafood may rise,further imbalancing our skewed trade picture,but only if supply can keep prices low.Maybe pictures of dying wildlife on our pristine semitropical shores will give politicians and businessmen enough cover to finally ween us from our oil addiction. P.S. I drive an automobile that gets 26/32,my wifes gets 22/28,we assume FULL responsibility for the oil spill,by having not bombarded our representatives previously demanding a national energy policy that would rid us of oil and foriegn influence.My bad.How about you???
The question should be will the oil spill effect the economy. There is no recovery. No the oil spill will not affect the economy, but the governments reaction to it might. If the government reacts by reducing or stopping off shore drilling the affect will be higher oil prices which will seriously impact the economy. They would also be shooting themselves in the foot by doing so, as federal gas taxes are assessed by the gallon, and so they have a vested interest in having as many gallons as possible sold.
Do you think the economic effect of the spill only a localized problem for the gulf economy, or can it have a ripple effect on the national economy, creating a double dip recession?
I agree with the others that there is no recovery. What this spill could do is give Obama an excuse to put in the carbon taxes. If this happens, it will definitely have a detrimental effect on the economy.
BP oil spill may fuel drive for carbon tax (http://www.nationalpost.com/related/topics/spill+fuel+drive+carbon/3110055/story.html - broken link)
Yes, it will have an impact but is just one of many things hampering an economic recovery.
Government regulations and expansion, the serious debt problems here and overseas, worldwide currency concerns, and factors that have moved resources and production to Asia all combine to insure we will not see a typical recovery.
Until we make changes to restore commerce, competitiveness, and confidence to this economy we will continue to struggle.
Hate to cut it to you, but most of corporate america has recovered. You don't need to hire people to have an economic recovery.
For a business, they will do whatever makes sense for their bottom line.
Right now, it makes sense to NOT hire any americans. Simply put, people in other countries are more competitive and provide better value compared to americans. Why do you think so many people shop at wal-mart? In other countries there is no discrimination law, minimum wage, sexual harassment blah blah to deal with. All of these laws add a COST to US labor. A cost which does not exist in other countries.
Going forward, you will see more and more non-american companies selling their products in the USA. Their headquarters will be located in Dubai, singapore, or hong kong. Their production/assembly lines will be located in China or India. Their products will be shipped to the USA and sold at big box retailers or for smaller businesses distributed through smaller retailers. Meanwhile, they will employ NO americans, other than the guy who gets the job stocking the shelf or being a cashier. Thats where the economy is going and its insanely profitable.
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Until we make changes to restore commerce, competitiveness, and confidence to this economy we will continue to struggle.
Spot on. Been saying it for a while now. Want the jobs to come back to the USA? Cut regulations and lower taxes. The USA will NEVER have a recovery so long as other places are better places of doing business. Just look @ singapore and Hong Kong. Look what they are doing. How many taxes do businesses pay in Hong Kong? 16.5%. How about Singapore? 17%. How about for the USA? 15-39% + possible state taxes. How about dubai? 0% (also 0% income tax)
meanwhile the USA is talking about socialism, higher regulations, more government, more taxes, cracking down on tax havens etc. Its a recipe for disaster.
Last edited by killer2021; 06-15-2010 at 06:44 PM..
meanwhile the USA is talking about socialism, higher regulations, more government, more taxes, cracking down on tax havens etc. Its a recipe for disaster.
That's always the funny thing with leftists is they complain about business going overseas yet pile on more and more taxes and bureaucracy. Idiots. Why would business want to stay in a hostile environment?
Personally I have no qualms working overseas or going overseas, especially if the USA makes it punitive to be in business. And it's not just the tax issue, I hate tons of paperwork.
Do you think the economic effect of the spill only a localized problem for the gulf economy, or can it have a ripple effect on the national economy, creating a double dip recession?
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Idiots. Why would business want to stay in a hostile environment?
