First voiced in the 1970s by Arthur Laffer, an adviser to the Nixon administration who came from the conservative Chicago school of economics, it was embraced by the likes of Ronald Reagan and Margaret Thatcher and, consensus has it, went a long way to alleviating the stagflation of that era (
though falling energy prices and interest rates, demographic shifts and yes, deficit spending contributed too).
There is typically a bit of a lag
between falling energy prices and their effect on consumer spending, but by Q3 12, declining energy prices should be supporting real consumer spending; we look for 2.5 % consumer spending growth in H2 12.
During the quarter the market experienced continued instability,
despite falling energy prices and Japan slowly beginning to recover from the March earthquake and tsunami disasters.
And the energy companies, already feeling the pinch
from falling energy prices and weak demand, want to extend the life of their plants into the 2020s, to put off the drain of funding new builds.
Exelon's Executive Vice President for Governmental Affairs Joseph Dominguez said the nuclear plant is not making enough money to break even because
of falling energy prices, a similar situation for the company's Ginna plant nearby Rochester and for Entergy's Fitzpatrick Nuclear Plant, which is slated for closure next year.
But rising labour and material costs, and
falling energy prices, forced it to become more «return - focused,» she says.
Falling energy prices have made energy stocks a declining part of the S&P 500 in recent years.
In a December 2017 article in The Hill, Tate Lacey observed that the Fed has been using this excuse ever since 2012, citing one «transitory factor» after another, from temporary movements in oil prices, to declining import prices and dollar strength, to
falling energy prices, to changes in wireless plans and prescription drugs.
Falling energy prices have had a huge impact on the S&P 500, as can be seen when looking at earnings of the S&P 500 including and excluding the energy sector.
While the Canadian market has seen more volatility over the last couple of years in large part due to
falling energy prices, it's still creating record highs.
A sluggish economy, strong dollar and
falling energy prices have pushed inflation down to historically low levels.
Falling energy prices have pushed many companies to unjustifiably low levels.
Falling energy prices, fiscal pressures and emissions mitigation pledges made by 191 countries for the 2015 Paris Agreement create an opportune time for reform.