Falling Oil Prices are not a Domestic Economic Disaster

Falling Oil Prices are not a Domestic Economic Disaster

The financial media are full of lamentations that the low price of oil is devastating the world economy in general and the US stock market in particular. This is strange given that in 1980 and 2010 the relatively high price of oil was being touted as ruining the US economy and its stock prices.  It is likely that low oil prices will damage the economies of nations that are substantial net exporters of oil. But I see no logic to the idea that low prices are a long term negative to the many economies that are net importers of oil. In the US the domestic boost of fewer dollars going to pay for oil imports should more than offset the lower oil revenues to the regions of the US that are net producers of oil.

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