Wages don’t rise at the same time as oil prices rise, Tverberg writes. The result is a mismatch between what citizens can afford, and the cost to manufacture and transport products.
In the wake of record California gas prices, governor orders air-quality regulators to let refiners switch to winter-blend fuel. But how quickly California gas prices fall depends on a variety of refinery and pipeline issues.
High oil prices and rising gas prices weaken an economy because they reduce discretionary spending and indirectly cause people to be laid-off from work, Tverberg writes. Can the US economy stand another jump in prices?
The major issue for many countries is that oil is becoming too expensive for the economy to afford, Tverberg writes.
Economic and job growth are closely tied to energy consumption. While jobs can grow faster than energy use when efficiency kicks in, the cost may be lower wages.
In an interview, energy economist James Hamilton reveals how demand for oil keeps outstripping production, even with new shale oil supply coming from the United States.
Sure, the recent economic news has been good, but there are plenty of things (like oil prices) that should keep you worrying
The Kauffman Foundation surveyed 200 economics bloggers about the status of the economy and the recovery. Here's what they said.
Gold prices hit $1,275.20 per ounce Tuesday. A poor economy and record prices have renewed interest in prospecting in Western states where public lands are rich with deposits and small-scale operators are all but free from government regulation.
Troubled loans – from homes to cars – could trim economic growth by 1 percentage point, a new forecast says.