hypocritexposer
Well-known member
Tex, you can call them subsidies or tax credits, or whatever you like, but one thing is for sure, GDP is tied to oil price.
The higher the oil prices, the lower the GDP. It's all about balance.
"What tax credits can we provide for the oil industry, so as to keep the economy growing?"
If you give $5 Billion in tax credits to the oil industry, that results in $5 billion +1 in GDP growth, is that beneficial or detrimental to the citizens of a Country?
What % of GDP growth equals the same % of employment/job growth? What does that job growth mean for tax revenue?
The higher the oil prices, the lower the GDP. It's all about balance.
"What tax credits can we provide for the oil industry, so as to keep the economy growing?"
If you give $5 Billion in tax credits to the oil industry, that results in $5 billion +1 in GDP growth, is that beneficial or detrimental to the citizens of a Country?
As with GDP and U3, there also is a historical relationship between oil price and GDP. According to the US Energy Information Administration, a ten-dollar change in crude oil price causes GDP to rise or fall by about 0.2 percent within a year and about 0.5 percent during the subsequent year. Therefore, Mr. Obama needs to have oil prices start falling now by about $30-40 in order to get the GDP up 0.75 percent by next June. That should be enough growth to get U3 down 0.3 percentage points by September 2012.
http://www.americanthinker.com/2011/06/2012_is_not_about_unemployment_its_about_oil.html
What % of GDP growth equals the same % of employment/job growth? What does that job growth mean for tax revenue?