Cheap Oil: Economic Boost

http://blogs.wsj.com/japanrealtime/2015/01/16/analysis-why-cheap-oil-helps-japans-industries-more-than-consumers/

Will cheap oil actually boost the Japanese economy? According to the article, most of the cheap oil goes to producers not consumers. The real questions is if producer costs decrease, will they pass on the benefits to consumers and employees?

Even if they do pass on the benefits, how long will it take for consumers and employees to begin to feel the affects of the benefits? And how long before they actually start acting on the benefits with more consumer spending, that is badly needed in the Japanese economy.

The article further states that producers are not going to increase investments etc. until they see demand for their products increase. That could be a challenge. How do producers get consumers to demand more if they don't feel good about the economy due to perceived benefits being less that desirable, either with increased wages or other benefits.

© 2015 Tom Metts,  all rights reserved