The Economic Impact of Oil and Gasoline Prices - my favorite dish in the restaurant essay

One of my favorite shows is the myth vandals of discovery, and I always look for opportunities to clarify the facts.
According to the Energy Information Administration, gasoline consumption is as follows.
In addition, some well-informed experts believe that for every $1 drop in oil prices, consumer disposable income will increase by $10 billion. Therefore, the purchasing power is increased in the economy, because the common wisdom shows that the price of gasoline will change by 2 for every $1 change in oil prices. 5 cents.
If you use EIA numbers "between 19 and 21 gallons of oil per barrel", then we have about 5 cents, and 2 ranges, without taking into account other cost drivers.
5 to 5 cents per gallon.
But instead of relying on loose facts, I chose to use simple math and verifiable market data, and I created the table below showing the prices of the three items (
Number rounded).
According to the futures prices of West Texas Intermediate crude, Brent crude and gasoline, we can see that the impact on gasoline prices is between 2 and 3.
4 cents and 2 cents during this period.
The claim for 5 cents is quite valid.
Then use the consumer data released by EIA, that is, 138.
6 billion gallons per year, our price is around $2.
$8 billion and $4.
Oil prices fluctuate 7 billion per dollar per year.
In addition, the sharp decline in gasoline prices between the last five and August means that the economy will grow by $75 billion in the next 12 months ---not now --
If the price remains the same.
This is where the truth is stretched, although I am a "glass-half-
I like to measure the actual volume if possible.
Of course, lower energy prices also have other adverse economic effects on other sectors, but this is not covered by the broad statement above.
However, the straight-line economy is working again, and it is not a simple resource to move from one economic sector to another.
The energy sector is the loser in the process.
Of course, many people will say that oil companies are the culprit, they charge too much for their products, but this does not change the fact that real people, income and income are affected, making it clear, the absolute $75 billion did not enter the mainstream of the economy, with oil prices changing by less than $10 billion per dollar.
Finally, $75 billion is about $0. 5% of U. S.
Gross domestic product.
For example, if my favorite restaurant reduces the price of my favorite dish by 10%, I will have extra money to spend elsewhere.
But the income of restaurant owners will decrease, and the income of waiting personnel will decrease, because tips will decrease and their consumption habits will change.
Nevertheless, one thing is correct, which has a lot to do with psychology: Consumer sentiment has a positive response to low gasoline prices, which is an advantage.
Disclosure: I do not have a position in any of the stocks mentioned, nor do I have a plan to start any position in the next 72 hours.