Cause and Effect of Oil Prices on the U.S. and World Economy

Oil prices are continuously fluctuating resulting in various effects in the U.S and world at large. This may be due to the fact that oil is a very critical commodity with regard to the operations of any country hence; a slight change in the macro or micro environments of the oil producing countries alters the oil prices.Advertising We will write a custom essay sample on Cause and Effect of Oil Prices on the U.S. and World Economy specifically for you for only $16.05 $11/page Learn More There are various direct and indirect factors that affect oil prices. Oil prices have substantial effect on the economy of the U. S. as well as that of the entire world. This paper seeks to talk about the causes and effects of oil prices on the U.S and the world economy. Various geo-political factors and natural calamities like the North Korean missile tests, hurricane Katrina and the conflict between Israel and Lebanon in 2006 are deemed to have an indirect link to the gl obal oil market, but have great short-term effects on oil prices (Tuttle Ola, 2010). However, the onset of global recession in 2008 seemed to indicate that the aforementioned factors have insignificant effects on oil prices because the recession was associated with a fall in oil price from $147 to $32. Fall in oil prices has a positive effect on the economy of the U. S. as well as that of the entire world since business activities are not limited (Tuttle Ola, 2010). Supply disruption is also conceived to be an attributing factor to oil prices with the incidence of 1973 as evidence. The oil supply growth has been slow despite the fact that oil production has surpassed new discoveries. Similarly, the demand is too high to be met by the slow supply for oil hence, acting as an attributing factor for oil prices as well. High demand and low supply leads to an increase in oil price. The United States is the leading consumer of oil and high oil prices usually have a very great impact on t he country’s economy (Roubini Setser, 2004). The impact of oil prices varies depending on the fluctuation of the continuously changing oil prices. When fluctuation in oil price is increased, then the effect on the U. S. and global economy is negatively affected. The U. S., as well as the global economy improves with every decline in oil price. The effects of oil price shocks are great and have been the reason for every U.S. and global recession experienced in the past. Oil price shocks tend to suppress the economic growth of the U.S and related oil importing countries. An adamant escalation in oil price by 10% leads to a reduction in the US and global economic growth rates by 0.3-0.4% in one year. High oil prices lead to reduced consumer spending hence a reduction on economic growth. An increase in oil prices results in increased production costs and a reduction in profits for industries that highly rely on oil in the United States (Roubini Setser, 2004).Advertising Lo oking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The international Energy Agency (IEA) supports the highly held conventional wisdom that oil price increase leads to lowered GDP and increased inflation and high rates of unemployment causing a general dwindle in OECD’s economies. Facts show that barrel increase by 10 $ results in a reduction of OECD’s GDP by 0.4%, which is below baseline, as was the case in 2004 and 2005 respectively. In addition, the inflation rate is raised by 0.5 and 0.6% respectively, above the standard or acceptable rates (McKibbin Stoeckel, 2004). It is without doubt that oil prices have a great impact on the U.S and global economy. Oil prices are continuously changing due to various factors as mentioned above. An increase in oil prices is however associated with lowered economic growth, high rates of inflation and unemployment while acceptable/reduced oil prices ensure eco nomic growth, increased business activities as well as increased consumer spending. Regulation of oil prices is very important because it is apparent that high oil prices negatively affect the U.S and global economy. References McKibbin, W., Stoeckel, A. (2004). Oil Price Scenarios and the Global Economy. Economic Scenarios. Web. Roubini, N., Setser, B. (2004). The Effects of the Recent Oil Price Shock on the U. S. and Global Economy. Web. Tuttle, R., Ola, G. (2010). Oil Ministers See Demand, Prices Rising Undeterred by Greek Debt Crisis. Bloomberg. Web. This essay on Cause and Effect of Oil Prices on the U.S. and World Economy was written and submitted by user Bo Cortez to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Free Essays on Leonardo Da Vinci

Leonardo Da Vinci is one of the greatest and most ingenious men that history has produced. His contributions in the areas of art, science, and humanity are still among the most important that a single man has put forth, definitely making his a life worth knowing. Da Vinci, born on April 15, 1452, is credited with being a master painter, sculptor, architect, musician, engineer, and scientist. He was born an illegitimate child to Catherina, a peasant girl. His father was Ser Piero da Vinci, a public notary for the city of Florence, Italy. For the first four years of his life he lived with his mother in the small village of Vinci, directly outside of the great center of the Renaissance, Florence. Catherina was a poor woman, with possible artistic talent, the genetic basis of Leonardo’s talents. Upon the realization of Leonardo’s potential, his father took the boy to live with him and his wife in Florence (Why did). This was the start of the boy’s education and his quest for knowledge. Leonardo was recognized by many to be a â€Å"Renaissance child† because of his many talents. As a boy, Leonardo was described as being handsome, strong, and agile. He had keen powers of observation, an imagination, and the ability to detach himself from the world around him. At an early age Leonardo became interested in subjects such as botany, geology, animals (specifically birds), the motion of water, and shadows (About Leonardo). At the age of 17, in about 1469, Leonardo was apprenticed as a garzone (studio boy) to Andrea del Verrocchio, the leading Florentine painter and sculptor of his day. In Verrocchio’s workshop Leonardo was introduced to many techniques, from the painting of altarpieces and panel pictures to the creation of large sculptural projects in marble and bronze. In 1472 he was accepted in the painter’s guild of Florence, and worked there for about six years. ... Free Essays on Leonardo Da Vinci Free Essays on Leonardo Da Vinci Leonardo Da Vinci Leonardo Da Vinci is one of the greatest and most ingenious men that history has produced. His contributions in the areas of art, science, and humanity are still among the most important that a single man has put forth, definitely making his a life worth knowing. Da Vinci, born on April 15, 1452, is credited with being a master painter, sculptor, architect, musician, engineer, and scientist. He was born an illegitimate child to Catherina, a peasant girl. His father was Ser Piero da Vinci, a public notary for the city of Florence, Italy. For the first four years of his life he lived with his mother in the small village of Vinci, directly outside of the great center of the Renaissance, Florence. Catherina was a poor woman, with possible artistic talent, the genetic basis of Leonardo’s talents. Upon the realization of Leonardo’s potential, his father took the boy to live with him and his wife in Florence (Why did). This was the start of the boy’s education and his quest for knowledge. Leonardo was recognized by many to be a â€Å"Renaissance child† because of his many talents. As a boy, Leonardo was described as being handsome, strong, and agile. He had keen powers of observation, an imagination, and the ability to detach himself from the world around him. At an early age Leonardo became interested in subjects such as botany, geology, animals (specifically birds), the motion of water, and shadows (About Leonardo). At the age of 17, in about 1469, Leonardo was apprenticed as a garzone (studio boy) to Andrea del Verrocchio, the leading Florentine painter and sculptor of his day. In Verrocchio’s workshop Leonardo was introduced to many techniques, from the painting of altarpieces and panel pictures to the creation of large sculptural projects in marble and bronze. In 1472 he was accepted in the painter’s guild of Florence, and worked ther... Free Essays on Leonardo Da Vinci Background Leonardo was born in the town of Vinci in the Tuscan hills, on April 15, 1452. This is known from his grandfather, Antonio, who wrote down the details of the baptism: A grandson of mine was born, son of Ser Piero, my son, on April 15, Saturday at three in the night (11 pm). He was baptized by the priest Piero di Bartolomeo, Papino di Nanni Banti, Meo di Tenino, Piero di Malvolto, Nanni di Venzo, Arrigo di Giovanni the German, Monna Lisa di Domenico di Brettone, Monna Antonia di Giulliano, Monna Nicolosa del Barna, Monna Maria, daughter of Nanni di Venzo, Monna Pippa di Previcone. The names following that of the priest were of the witnesses, five men and five women as tradition demanded. Noticeably, the boy's mother is not present at the time of baptism. Leonardo's father was Piero Da Vinci, and of his mother only her name "Caterina" in known. Caterina is understood to have been a peasant girl, or perhaps a barmaid. When the young boy was born, he lived with his mother for the first few years of his life. It is intriguing that in all of his writings, Leonardo never mentioned his mother, even though there is evidence that later on his life he was aware of who she was. The Da Vinci's were a family that had been established in Vinci since the 13th Century. Many generations of notaries had given the family a status, and the title of Ser which was passed down to Leonardo's father. Although it is very difficult to find information about Leonardo's ancestors, this is a brief genealogical table: Ser Piero di Ser Guido (d. 1412) | Ser Antonio di Ser Piero di Ser Guido (1372-1464) | Ser Piero da Vinci (1426-1504) | Leonardo da Vinci (1452-1519) Ser Piero, Leonardo's father was a man of great virility, who lived... Free Essays on Leonardo Da Vinci Leonardo Da Vinci Leonard Da Vinci once said, â€Å"There can be no greater or lesser mastery over oneself.† Leonardo Da Vinci was one of the greatest inventors and scientists of recorded history. His genius was unbounded by time and technology. His ways were driven by his appetite for curiosity and intuitive sense of the natural wonders around him. Leonardo Da Vinci was dedicated to the discovery of truth and his contributions to science and art were legendary. There are many people who are considered geniuses in their own field of expertise, but Leonardo Da Vinci stands out as a true genius of many fields of expertise. He not only created masterpieces of art, but also contributed heavily to the fields of engineering and architecture. He also designed and sketched machines and inventions that were clearly ahead of his time. He did not limit his creativeness with accepted means of his time, and had the courage to experiment with new and untried ideas, even if it meant failure on his part. Leonardo was born on April 15, 1452, in Vinci, which is now a part of Italy. He was the illegitimate son of a notary public and a peasant girl. Leonardo’s father noticed his potential artistic talent and took him to Florence to start his education. Leonardo was recognized by many to be a Renaissance child because of his multitude of talents. He had keen powers of observation and imagination and had the ability to detach himself from the world around him. Leonardo showed an early interest in subjects such as botany, geology, animals, and natural elements, he was also very intrigued by shadows. When he reached the age of seventeen, Leonardo became an apprentice to one of Florence’s leading painters and sculptors, Andrea del Verrochio. At the age of twenty, Leonardo was accepted in the painter’s guild of Florence, and stayed for six years to learn and work with Verrochio on paintings like, â€Å"The Baptism of Christ†. On this painting, there ... Free Essays on Leonardo Da Vinci Leonardo Da Vinci is one of the greatest and most ingenious men that history has produced. His contributions in the areas of art, science, and humanity are still among the most important that a single man has put forth, definitely making his a life worth knowing. Da Vinci, born on April 15, 1452, is credited with being a master painter, sculptor, architect, musician, engineer, and scientist. He was born an illegitimate child to Catherina, a peasant girl. His father was Ser Piero da Vinci, a public notary for the city of Florence, Italy. For the first four years of his life he lived with his mother in the small village of Vinci, directly outside of the great center of the Renaissance, Florence. Catherina was a poor woman, with possible artistic talent, the genetic basis of Leonardo’s talents. Upon the realization of Leonardo’s potential, his father took the boy to live with him and his wife in Florence (Why did). This was the start of the boy’s education and his quest for knowledge. Leonardo was recognized by many to be a â€Å"Renaissance child† because of his many talents. As a boy, Leonardo was described as being handsome, strong, and agile. He had keen powers of observation, an imagination, and the ability to detach himself from the world around him. At an early age Leonardo became interested in subjects such as botany, geology, animals (specifically birds), the motion of water, and shadows (About Leonardo). At the age of 17, in about 1469, Leonardo was apprenticed as a garzone (studio boy) to Andrea del Verrocchio, the leading Florentine painter and sculptor of his day. In Verrocchio’s workshop Leonardo was introduced to many techniques, from the painting of altarpieces and panel pictures to the creation of large sculptural projects in marble and bronze. In 1472 he was accepted in the painter’s guild of Florence, and worked there for about six years. ... Free Essays on Leonardo Da Vinci Leonardo Da Vinci is one of the greatest and most ingenious men that history has produced. His contributions in the areas of art, science, and humanity are still among the most important that a single man has put forth, definitely making his a life worth knowing. Da Vinci, born on April 15, 1452, is credited with being a master painter, sculptor, architect, musician, engineer, and scientist. He was born an illegitimate child to Catherina, a peasant girl. His father was Ser Piero da Vinci, a public notary for the city of Florence, Italy. For the first four years of his life he lived with his mother in the small village of Vinci, directly outside of the great center of the Renaissance, Florence. Catherina was a poor woman, with possible artistic talent, the genetic basis of Leonardo’s talents. Upon the realization of Leonardo’s potential, his father took the boy to live with him and his wife in Florence (Why did). This was the start of the boy’s education and his quest for knowledge. Leonardo was recognized by many to be a â€Å"Renaissance child† because of his many talents. As a boy, Leonardo was described as being handsome, strong, and agile. He had keen powers of observation, an imagination, and the ability to detach himself from the world around him. At an early age Leonardo became interested in subjects such as botany, geology, animals (specifically birds), the motion of water, and shadows (About Leonardo). At the age of 17, in about 1469, Leonardo was apprenticed as a garzone (studio boy) to Andrea del Verrocchio, the leading Florentine painter and sculptor of his day. In Verrocchio’s workshop Leonardo was introduced to many techniques, from the painting of altarpieces and panel pictures to the creation of large sculptural projects in marble and bronze. In 1472 he was accepted in the painter’s guild of Florence, and worked there for about six years. ...