Prices for all imports, including oil, will increase here and generally, the world's economy will slow, hurting everyone,...
Adjusted for inflation the price of oil is very low. Which prompt this question in my mind. If oil prices were to increase enough to spur capital investments in the petro-chem business is that really a bad thing? Or is my assumption that capital investment in that area would grow is false.
That's one way of looking at it.
The price of oil is relative to the price of oil. It is its own benchmark -- like gold. Adjusting it for inflation is a politician's trick.
I'm getting concerned with the lack of correlated spending cuts to go along with tax cuts. I think Bush is headed for some trouble here. We are bleeding red, interest rates are in the toilet (where is the incentive for saving yet?), American consumers are on the hook for a trillion and a half in credit card debt (which, interestingly enough, doesn't track with interest rates), and yet the government still grows. We're going to become a nation of gimmicks and tricks. That's not a good thing.