Peak oil theorist Jeff Rubin has an appealingly simple theory of economics for the past 30 years:
Feed the US economy cheap oil, and you’ll see robust growth rates and a drop in the jobless rate to four-decade lows—no matter who’s in the White House.
Rubin, who was the chief economist for CIBC, says triple digit oil will be the biggest impediment on US growth.
Any effort to stimulate the economy that without fixing the energy crisis will just add to the debt burden. Building new oil-based infrastructure could even hurt prospects of growth, he writes at Globe And Mail:
The age of cheap oil is over, and that means recalibrating the speed limit for the world’s largest oil-consuming economy. In a world of $75–per-barrel to triple-digit oil prices, the US economy is not likely to grow more than by 1 to 2 per cent per year until it can curb its oil appetite significantly.