P,S. Qualified economists please do not reply : you are the last people to know the answer!Does anyone else remember the catastrophic effect of increased oil prices on the world economy 15 years ago?
No, I don't remember a disastrous effect although, at that time, unemployment was a problem in Britain and Europe. And it was leading up to the time that we had to withdraw from the ERM. I think that problems were mainly in Britain: the pound was overvalued and the economy was being managed badly. Why blame a slump on a small rise in oil prices? There were other factors.Does anyone else remember the catastrophic effect of increased oil prices on the world economy 15 years ago?
Im no expert, but I think its connected to supply and demand. There are many complex factors affecting oil production and delivery. I think during the previous energy crisis you refer to, supply was not able to keep up with demand in some areas of the world. Right now it is, just, but a lot of the easily accessible oil is declining, plus there is more demand for it than ever before. A lot of American and British domestic oil has peaked, it makes the supply chain longer and more subject to disruption. Certainly Britain has relatively high fuel duty, but other countries with lower rates of taxation tend to increase it in other areas. Basically the tax has to come from somewhere.
I'm sure some people will disagree with me, but everyone seems to have a different opinion on this.
well we are driving a machine that was basically invented over 100 years ago! the engine has been poked, stiffed, bent, and squeezed but we still use the same invention today.
surely in over 100 years another engine could have not been produced using completely different oils/fuels.
probably not the right answer to your question but i thought id write this anyhow.
Eh?
I don't recall the effects in 93 but I do remember the high interest rates in 83.
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