This headline at CNN captures a huge problem with economic journalism, and its also a view that is part of the folk economics of my students: Low gas prices are great for U.S. consumers, but over time they hurt energy company stocks and jobs in the U.S. and other countries. My response: Why should we care about energy company stocks and jobs PER SE? We dont get prosperous economies by ensuring that jobs are never lost or that every industrys stock prices stay high. Prosperity means enhancing the average persons (and the least well offs) ability to purchase the goods and services that improve their well-being. Prices change and therefore some industries do well and others do poorly. Thats how markets work. I dont GIVE A SHIT whats good for Exxon-Mobil or GM or Google or any other firm. I care about the improved ability of people to get the goods and services they want. Its ALL about consumers. Producers only matter to the extent we leave them free to figure out what it is consumers want and to reward them for getting it right and to financially punish them when they get it wrong. So THREE UNAMBIGUOUS CHEERS for cheap gas!!!
Posted on: Tue, 06 Jan 2015 03:24:59 +0000
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