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To: Wally Mastroly who wrote (8544)9/13/1999 2:06:00 PM
From: mister topes  Read Replies (2) | Respond to of 15132
 
Rising oil prices act the same way on consumers as
rising taxes. They pull discretionary income out
of the pockets of consumers and into the pockets
of those selling gasoline and heating oil to
consumers and utilities and transportation companies.
Therefore rising oil prices should be viewed as
an economic depressant, which would tend to
reduce the growth rate of the economy as this
"energy tax" effect works its way through.
On balance, Alan Greenspan probably likes this net effect.