"The price of imported oil in the US doubled between summer 2003 and summer 2005, reducing consumers' purchasing power by more than 1 per cent of gross domestic product"

This quote by Martin Feldstein highlights the substantial impact that the rate of imported oil can have on the United States economy. Between summer 2003 and summer 2005, the rate of imported oil in the US doubled, leading to a decrease in customers' buying power by more than 1 per cent of gross domestic product. This means that the amount of cash that consumers had offered to spend on goods and services was decreased by 1 per cent of the overall worth of all items and services produced in the United States. This reduction in buying power had an unfavorable impact on the United States economy, as it minimized the quantity of cash offered to be spent on goods and services, which in turn reduced economic development. The boost in the cost of imported oil also had a negative effect on companies, as it increased their expenses and lowered their profits. Overall, this quote by Martin Feldstein highlights the considerable effect that the cost of imported oil can have on the US economy.