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February 25, 2009

Some good news

We need some upbeat economic news. With so much gloom out there, can you find any news about the economy that will put a smile on our faces?

Dr. Mike Walden, North Carolina Cooperative Extension economist in the College of Agriculture and Life Sciences at N.C. State University, responds:

"Well, depending upon how you look on it, one piece of good news could be that we no longer have a shortage of oil. Right now, the world is swimming - no pun intended - in excess oil. We have about 1.5 million barrels of excess oil every day in the world. That's been the major reason why prices - gas prices - on trend have gone down from the highs of over $4 a gallon back last year to now roughly a little bit under $2 a gallon. And of course the big reason is the drop off in world oil use with the worldwide recession. If unemployment is higher, you don't have as many people driving to work, for example, that means people aren't using their cars as much; same thing with shopping. So you can argue that this is one piece of good news. In fact, you can extend it and say that really for most commodities, basic food commodities - wheat, corn, etc., metals - we've seen all of those fall dramatically in price. This is a result of the recession, and you can look on it as good news. It's kind of like a tax cut. When we don't pay as much for gas at the pump. It's kind of like getting a tax break."

Posted by Dave at February 25, 2009 08:00 AM