Wednesday, March 9, 2016

Who suffered most from the energy prices in 2008?

Two charts, the top is energy consumption by industrial sector.  The bottom is consumer consumption.  It was industrial producers who took the hit on  oil prices, the consumer only uses about 5% of income on energy. So oil prices hit $140, and the supply chain stopped working.  Oil is not stopping the consumer right now, federal entitlement taxes are killing the consumer.
Why the oil shortage in 2008?
China, war and technology conversion.  The technology conversion was the cost of running Amazon UPS deliveries and brick/mortar at the same time.  

No comments: