Sunday, June 6, 2010
Oil prices drive America’s economy
How economy goes bad as oil prices spike
Wants to see something impressive – how the price of oil impacts USA’s economy. In the past 60 years, one of the worst recessions was 1957. That year oil (per barrel) jumped for $2.94 to $3.14.
Second worst recession (besides current depression), 1975 - $12.31, up from $3.60 in 1972. Nixon was in trouble and did nothing to protect the USA’s economy. He had resigned by 1975.
Jimmy Carter didn’t do much to control oil prices, either. His first year in office, oil about doubled, from $15 to $25 in one year. That had to impact the nation’s economy, and it did.
Carter wasn’t that good at managing OPEC. It continued to decimate the 1980s economy, rising to over $37 in 1980. Hey, he was busy with hostages in Iran. Sound familiar? Like a war in Afghanistan, Iraq and nukes in Iran and North Korea? Lots can take you mind off what drives the USA economy – oil prices.
Have never had much positive to say about Ronald Reagan, but he did control the price of oil. Brought it down to below $15 before he left office
George Bush the first let it rise. Why is that not surprising? Up to $23+ during his presidency.
Clinton had it down to $11.91 during his presidency. That’s why the nation had such a robust economy during his two terms. Unfortunately, Monica Lewinsky took his mind off the economy. When he left office, oil was near $30 per barrel, the highest since Carter. Hmmm, Democratic presidents?
George Bush the second had it down to $23+ in 2002. Not much by his efforts, 9/11 ruined the world economy and that drove prices down. The doofus president allowed it to triple what either of the Democratic highs had, nearly $92 per barrel, even adjusted for inflation. You wonder why the economy is bad? Blame George Bush!
Barack Obama isn’t doing much to stem oil prices. Hey, he’s busy with two wars, nuke threats, now oil spills. Yet it’s down about a third of George Bush’s legacy.
When adjusted for inflation, the bad presidents on oil prices include the ONLY one never elected to vice presidency or presidency (still contend it was unconstitutional), Gerald Ford. Jimmy Carter, who let it slide to the same spot as George II – who is the hands down winner as worst president ever, if you’re looking at oil prices.
A president controls little. They appoint Supreme Court justices. They also influence OPEC, which sets oil prices.
This article was assembled without the advice of one of the world’s leading oil experts, 2000 Pulitzer Prize winner Pete Chronis.