Wednesday, August 24, 2011

Energy Cost As Percent of GDP Linked to Slow Growth

link here to article

This article by an oil analyst suggests that low energy cost stimulated US growth prior to the recession. It also argues that rising energy costs as a percent of GDP are a barrier to growth. The implication is government spending should be focused on lowering the energy share of economic output cost. This line of reasoning could stimulate investment in renewable sources of energy.

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