The plunge in the price of oil that began in July acts like a tax cut, it is said, and will boost spending by consumers and businesses, and thus goose the US economy. Among the voices propagating this view is the UBS macro strategy team. It found that if the current prices persists on average in 2015, you can expect a boost to US GDP of 0.5%, which would be big for the otherwise crummy US “recovery.”
I don’t know what these good folks have been smoking, but I want some of it too.
Read… This Is Why the Oil-Price Crash Will Maul the US Economy