Trump's Rant about oil prices

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Trump’s Oil Rant Misses New Reality: High Prices Can Help, Too. Bloomberg.

President Donald Trump may have a problem with oil prices being “very high,” but a decline would be a mixed bag for the U.S. economy, thanks to the boom in American energy production. When prices plunged starting in mid-2014 and stayed low for the next two years, U.S. producers felt the pain, much more and longer than was expected. A pullback in demand for oil-related equipment slowed mining and manufacturing output cooled investment and hurt jobs. For consumers, though, it expanded purchasing power, as less-expensive fill-ups at the gasoline pump left more money to spend elsewhere -- supporting the biggest part of the economy. The idea of cheap oil as a clear positive for the U.S. harks back to an earlier era when it would boost consumption, contain the trade deficit and hold down costs for businesses. Now oil prices play a more nuanced role: There’s been a boom in shale oil production, helping reduce petroleum imports and boost exports. And the global energy-price recovery since mid-2017 has helped usher a rebound in U.S. manufacturing and capital spending, underpinning growth.