Democrats high cost energy strategy has been holding back US economy

AP/Fuel Fix:
A business economics group has boosted its outlook for U.S. economic improvement this year and next, particularly for job growth.

The March report from the National Association for Business Economics forecasts more hiring, a lower unemployment rate, a lower inflation rate and more growth in consumer spending in 2015, compared to the group’s forecast in December 2014.

The report, released early Monday, also predicts more investment by businesses in both equipment and intellectual property, as well as modest growth in stock prices.

“Healthier consumer spending, housing investment and government spending growth are expected to make outsized contributions to the projected acceleration in overall economic activity. Accordingly, recent labor market strength is expected to continue,” John Silvia, the association’s president and the chief economist at Wells Fargo, said in a statement.

Other factors driving the improved forecast include an increased pace of activity in the housing sector, the strong dollar and continued low oil prices.

The report predicts the benchmark price for crude oil, which fell from $98 per barrel in December 2013 to $59 in December 2014, will average $61 per barrel at the end of the year and $69 per barrel in December 2016. Just three months ago, the group forecast that oil would spike to $85 per barrel by December 2015.
The administration's policy of artificial scarcity has been thwarted by greater productivity for oil production on non federal controlled sites.   Their plan to make less efficient alternatives look more competitive by driving up the cost of fossil fuels has clearly not worked, and the improvement in the overall economy is the result.

Even though oil production was down on federally controlled sites, production on private land increased to the point that the US had the largest increase in the last 100 years in 2014.  The downside to the lower prices is a slowing of the Texas economy.


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