If the United States immediately solved the addition to oil problem would it ruin the economy?

Question

In my opinion if we no longer had to import oil starting tomorrow the economic crash would be worst than the one in 1929. Legally the courts rule against any radical economic changes and side with a more moderate approach. This allows the same corrupt and greedy to still control the economy. Is there a better way to approach this problem short term without an economic disaster.

Answer 1

Economies can't really be "ruined"

Even in the 1929 'Crash' the lucky ones made out like bandits. We would see many "loosers" like the employees of Gas & Oil companies. The Middle East might feel like we've made "Eunic's" out of thier treasure and wage war. The 'lucky' ones would be "Shorting" oil companies. Buying the replacement energy. With war looming (from the oil cartel's) well, they'd be making new weapons (that don't use oil) ... so we'd see a boom in the manufaturing area's.

Let's say we did go into war. Well, without the addiction to oil, we wouldn't need oil to travel to another country ... we'd have $$$ to buy new equimpment ... we'd 'take out' oil fields, and leave the enemy without energy ... and yes, we'd then help the to 're-build' because over-all we're people who do this crazy thing.

Answer 2

That is highly unlikely. If you figured out a solution to the problem don´t you think that solution would involve an economic viable alternative to oil? The problem needs to be addressed because if it isn´t the economic crash that would follow when Wall Street finally realizes the Saudis have been inflating their oil reserves all along as oil production begins to drop while America has been sitting around doing nothing to prepare, that crash my friend would be far worse than the 1929 crash. There is real money to be made in finding alternatives to oil and fossil fuels. Bio diesel alone is a very impressive contender in the race for gasoline replacement. I don´t much appreciate the thought of coal as a replacement for oil but the US reserves of that stuff would last very long indeed as it can be readily converted into oil if oil import needed to be halted tomorrow. So don´t be too worried about the US economy being totally dependent of oil. You are too resourceful a nation to let your development be hindered by that black stuff. You might need some better leadership though.

Answer 3

I assume you mean that a substitute for imported oil can be found at a price that is less than the current price of oil.

This would not produce a crash. Quite the opposite, it would reduce input costs, raising profitability and fuel an economic boom.

Answer 4

It would.... but long term other industires would pick up and the economy and country would go on