Comment by cgio
5 hours ago
Do they make more money on average? Does any additional income cover the increase in cost of living? Becoming psychologically poor is much harder than becoming psychologically rich. I doubt that balance of payments goes anywhere near your average Joe’s pocket.
I mean, it's rather absurd to claim that "a net exporter country loses out because of increase in price of the commodity in question".
It absolutely does because balance of payments = exchange rate, and average Joe is poor and consumes disproportional part of imported goods vs the rich.
This is just wrong.
The overwhelming amount of expenses is for domestic products; lumber, food, services, rent, etc. Cheaper foreign shit isn't going to be meaningfully felt by the majority.
The part where the rich come in, is that the rich will disproportionally feel the upside of selling the fuel. The people on below average wage are just going to see prices rise and meager savings dilute, long before their wages grow.
Thats not to say the US isn't going to be well of as history's largest energy producer ever, but the reshuffling is going to be extremely painful for a majority of Americans.
Imported goods which have been made more expensive by tariffs?