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Oil prices inverted and unemployment claims |
Do high oil prices cause unemployment? Yes it did, during and shortly after the crash. But conservation and fracking solved the immediate oil shortage problem.
We do not now suffer a bubble in oil prices, we have adapted. However, look at the recent report of initial claims out today, and recent oil prices. Oil prices down and claims up, a sign that producers reducing the demand for both oil and employees, the coefficient has reversed. The second major constraint on the economy is prominent, a negative force now drives claims up and oil down simultaneously. Likely cause? DC multipliers still less than one.
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