Timeline for answer to Why are higher oil prices bad for the USA? by Joe W
Current License: CC BY-SA 4.0
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13 events
| when toggle format | what | by | license | comment | |
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| 18 hours ago | comment | added | Joe W | @BenVoigt Again, the root issue is that they can't afford to stay operating with the higher prices. There is no need to start a debate on this answer. | |
| 19 hours ago | comment | added | Ben Voigt | @JoeW: Some of the lost airline ticket sales are price elasticity, while some are flexibility -- a short-term bet that prices will fall again -- which is again due to unstable pricing. Either way, predictable fuel prices let companies plan and continue to profit. Of course increases are inflationary, and I'm not saying that's good, but it might be the lesser of two evils (as compared to having price shocks) | |
| 19 hours ago | comment | added | Joe W | @BenVoigt I disagree with that, while unstable prices can hurt the root issue is still that prices are getting higher making it unprofitable to operate without increasing prices which in turn lowers sales. In the case of airlines the higher ticket prices reduces the amount of people traveling which impacts the profitability of each flight. | |
| 19 hours ago | comment | added | Ben Voigt | @JoeW: Businesses losing money or closing down are more the result of unstable fuel costs than high prices. | |
| Apr 10 at 17:04 | comment | added | Joe W | @GregAskew Consumers paying more for products isn't a bad thing? Buisnesses losing money and possibly closing down isn't a bad thing? Higher oil prices lead to higher costs for many other things as the price of fuel has a large impact on the econemy and that isn't good. People are bing hurt by the increase in prices and knowing that we are being forced to use stratgeic reserves isn't helping them. | |
| Apr 10 at 14:57 | comment | added | Greg Askew | Consumers don't directly determine the price increases. The question asks "why are higher oil prices bad for the US". But the oil embargo resulted in the creation of the strategic petroleum reserve, and strategic investments, incentives, and policy changes that resulted in the US hedging their position to mitigate the impact of weaponized price shifts by OPEC countries. High price bad low price good is a herd spawned assumption that ignores the subtleties of these mechanisms that shape the impulsive elastic price increases. | |
| Apr 10 at 13:27 | history | edited | Joe W | CC BY-SA 4.0 |
Added information about airlines
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| Apr 10 at 13:25 | comment | added | Joe W | @GregAskew Higher revenue doesn't mean much to the consumer market, to consumers paying higher prices, or to the businesses being impacted by those prices. Not to mention, higher domestic production is meaningless if that production is exported. Having a large amount of imports and exports shows that we can't depend on domestic production. | |
| Apr 10 at 8:23 | comment | added | Greg Askew | The US has a strategic imperative to establish and maintain "higher" oil prices. Higher prices mean increased revenue for producers. The US wants to incentivize internal production to reduce reliance on external producers. Kissinger referred to the strategy as the "floor plan". However "critics argue that the floor plan is mainly aimed at getting the rest of the industrial world to safeguard a big U.S. investment in costlier sources of energy". time.com/archive/6846593/… | |
| Apr 9 at 20:54 | history | edited | Joe W | CC BY-SA 4.0 |
Added information about gas prices
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| Apr 9 at 13:04 | comment | added | Joe W | @quarague Why would higher import oil prices be good for anyone who has to pay for it? The price increase on imports raises the costs for everyone purchasing oil in the country. It is even causing some businesses to go under. | |
| Apr 9 at 6:24 | comment | added | quarague | This essentially says that historically high oil prices were bad for the US because they were a net importer but since 2019 the US is a net exporter so overall high oil prices should be beneficial to the US. | |
| Apr 8 at 23:15 | history | answered | Joe W | CC BY-SA 4.0 |