*e.g., LA Times Aug 4 2002 A-18 "Cheney Blames Democrats for Nation's Pain at the Gas Pump"
In each and every of three instances since 1973 when the petroleum price rose past the 4000 mark, the GDP went into decline. And in the most recent recession, soaring natural gas prices led the way.
closer look at the monthly/quarterly data:
-- Energy Price increases to utilities correlated with GDP change, Jan. 1999 - Feb. 2002
There was indeed a dip in GDP change 6 months prior to the Bush takeover, coincident with a dramatic increase in the price of natural gas over the prior half-year. And then an even deeper dip in the spring of 2001 when the recession is authoritatively thought to have begun, on the heels of the spike in the price of natural gas that peaked in January 2001.
In particular, the dramatic fall in prices precisely on December 12 and 13
USA Today, Feb.19, 2001,
"Wholesale prices soar in January ... the largest rise since September
1990 ... the spike in prices was mainly in the energy, tobacco and
automobile industries ...
LA Times, Feb. 20, 2001, "There's absolutely no question in my mind that policymakers are not addressing the root causes of this crisis -- which is the natural gas link" per U C Irvine economics professor Peter Navarro.
New York Times, June 5, 2001, "... fingers are pointing in other directions [other than El Paso] too. For example, the Southern California Gas Co. .. has reaped huge profits buying and selling gas in the last year ... "
LA Times, June 19, 2001, "Phillips Petroleum Com and El Paso Corp. are set to bet &5 billion that rising demand will make it profitable to ship natural gas from Australia to California. ... Prices [for natural gas] need to remain higher than 1990s levels to support El Paso's plan and rival projects."
L.A. Times, Sept. 24, 02, "FERC: Judge Says Energy Firm [El Paso Corp.] Manipulated Market"
L.A. Times, Sept. 30, 02, "El Paso Corp's executives and employees have given more than $2 million to the Repubican Party and President Bush in the last 2-1/2 years. Whether they will get a return on their investment remains to be seen."
L.A. Times, Oct. 14, 02
L.A. Times, Oct. 18, 02
New York Times, July 18, 2003, "The recession that began in March 2001 ended eight months later."
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