Last year, the oil price per barrel surged all the way to USD$145, a terrifying moment that traumatized the world. With such a scenario, you will not be surprised the economy will sink into depression.
Let's just scan through the industries that require oil. Electronics, railway, culinary, finance, engineering, wait a minute, I shall stop listing because practically all activities use oil.
With a slight triggering, the whole economy will be tilted sideways and many of us will tip of the scale just like that.
This is to me personally, the most salient factor that stands out apart from the rest. Without jobs, there is simply no nothing, simple as that and end of story.
This is often over-rated, people rumour that there is a recovery or a boom and everyone starts to invest in the stock market, causing it to rise respectively. However, when the realistic results are released, everyone become flabberghasted and they start to run all over the place like frantic ants.
I don't really see how this industry play a huge role in determining the state of the economy. It is afterall a luxury good and if people does not demand for it, it does not really mean they are cutting on their spending power. Afterall, they have so many other avenues to spend their money.
This measures consumer power, literally. When the retail sales start to drop, so will consumer confidence; almost pro rata. Nonetheless, without jobs, they have no money and they can't spend.
Home sales play a huge role also because of the various industries that is intricately connected to it. Examples are the lightning industry, bricks industry, construction industry, banking industry, the Fed, and so many many more.
Credits -cnn
No comments:
Post a Comment