Will Rising Oil Prices Derail Economic Recovery?
May 2, 2011 | Energy, Finance, Transportation
The economic news is usually quite mixed these days, with some pundits saying that the recovery from the disastrous mortgage meltdown is going very slow, though still on track for recovery by 2012. But three state governors think that all of the hope of a recovery could be derailed because of rising oil prices.
Due to much unrest in areas like Libya and the Middle East, oil prices have skyrocketed, although the shakiness of the price is often temporary. However, if the higher prices are sustained for any period of time, the governors of North Carolina, Arizona, and Indiana all went public in saying that it could derail their states’ individual economic recoveries.
In fact, North Carolina Governor Beverly Perdue said that it is not just a threat to her state, but also the entire country and the world. Mark Zandi, the chief economist at Moody’s, agreed with Perdue, saying that prices higher than $100 per barrel would hurt the slow recovery across the nation.
With the recent surge in oil prices, Saudi Arabia said they are willing to ramp up production to meet the gap and lower prices. Members of Congress and President Barack Obama have spoken publicly about efforts to help ease the pain that is a result of higher prices at the pump.
This article was written by: Dennis Micheals
