Kevin972

Don’t Worry About a Return to ‘70s Stagflation

While inflation is problematic here, it is much greater for China and India. The combination of both rising costs for manufacturing and rising transportation costs, along with ongoing global currency adjustments will, eventually bring manufacturing jobs back on shore. This may take 5-10 years, but it will happen. Cheap oil made the exporting of goods and services possible. Expensive oil favors more local solutions and more jobs in the long run. Currently there is a yet favorable envioronment that allows for this. I don't believe this will hold up in the long run. I don't believe we are in for the large oscillations that both China and India may have to endure, just slower growth. Overall, higher oil prices encourage local solutions and capabilities, which is just what the "creative" side of americans are capable of....even if we don't insist on 4 years of math, chemistry and physics at the high school level.