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Economy Went From Stable To Recession in 1 Year | Here’s Why (You May Not Like It)
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A rise in energy commodity prices can have a significant impact on people and the economy as a whole. Higher energy prices can lead to higher costs for consumers, businesses, and governments. This can result in higher prices for goods and services, lower investment, slower economic growth, and job losses. One historical example of an energy disruption was the 1973-74 oil crisis. OPEC, the Organization of Petroleum Exporting Countries, determined the price of oil and reduced production, leading to a dramatic increase in the price of oil. This caused a global economic slowdown and increased inflation, leading to higher prices for goods and services. The crisis also led to job losses in the manufacturing sector, as higher energy prices made production more expensive.
The dispute between Europe and Russia over energy supplies has the potential to be an immense issue for the economy. European businesses rely heavily on Russian energy resources, and if these become inaccessible, the economy could suffer greatly.
In addition, the geopolitical tensions between the two nations could cause stock prices and businesses to become unstable, as investors lose confidence in the market. If energy was no longer accessible from Russia, Europe would be forced to find alternative sources of energy. This could be difficult, expensive, and time consuming, as Europe would have to completely restructure its energy infrastructure. This could cause further economic disruption across the continent.
TOPICS AND TIMESTAMPS:
Energy Crisis This Winter 0:00
Layoffs and Beyond 7:38
Stocks See Red 11:55
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