Is falling oil price good during a recession?

I was wondering if there are any downsides to falling oil prices during a recession? It seems like it would be a good thing since low oil prices would lower the price of goods which would encourage consumers to spend and boost the economy so on… Am I missing something?

5 Responses to “Is falling oil price good during a recession?”

  1. donfletcheryh Says:

    Canada’s stock market still goes down when oil and gas prices go down. So Canada will see this as unwanted, even though individuals using those fuels will benefit. The vast majority of Canadians will benefit temporarily by dropping prices.

    We all, Canadians, Americans, anyone else, will be hurt if dropping oil prices induce us to increase our consumption of our limited non-renewable resources. This will be after our current recession, but it will trigger our next recession, not because of falling demand but because so much money will be leaving the economy once again.

  2. Cthulhu fhtagn! Says:

    it is good for oil-importing countries, and bad for oil-exporting ones.

  3. chris n Says:

    Well……..it is good in a way. A sort of “economic stimulus” if you will. However, it means the economy is very bad. I think for now on we should look at gas prices with a better understanding of what they mean. Yeah, 4.00/gas sucks, but it means the economy is at least doing ok. However, you will not get the typical American to appreciate such an idea. However, as you see sub $2.00 gasoline, it’s obvious that something is inherently wrong with the economy.

  4. baby nash Says:

    i agree with u about the fact that lowing oil price will help lower the price of goods but u should also think that worker are losing their job and they are refusing to consume more and reducing their transportation expenses. i believe there is no point in decreasing oil price at this time a time where consumers are thinking about a way to get a job. we americans have spent significant sum of money on unnecessary war. we have to sit down and analyze how we can increase our employment rate in stead of appeasing us with a lower oil price. we needed that years ago not now. our economy stinks really bad.

  5. Ed Atun Says:

    It is good for everyone except the states that collect gas tax and it's not so good for the atmosphere..