This Era of Low-Cost Oil Is Different
Many analysts and policy makers have a natural tendency to ‘look through’ the latest drop in oil prices — that is, to treat the impact as transient rather than as signaling long-term changes. I suspect that view would be a mistake this time around
As costs fall for manufacturing and a wide range of other activities affected by energy costs, and as consumers spend less on gas and more on other things, many oil-importing nations will see a rise in gross domestic product. And this higher economic activity is likely to boost investment in new plants, equipment and labor, financed by corporate cash sitting on the sidelines.