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NPR: Despite the rising cost of energy, the global economy keeps growing

Today on NPR's Morning Edition:

Oil prices have hit another record, topping $82 a barrel. Despite the rising cost of energy, the global economy keeps growing. But some observers wonder how long that can last...

How come they can't figure out that energy costs are up because of the growing global economy, not despite it? I'm certainly not happy about higher energy prices, but they are up because the global economy is growing, and that means higher demand for energy. Higher demand with no increase in supply means higher prices. Why can't NPR understand this?


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Comments (17)

Its NPR, economics is a too... (Below threshold)
SPQR:

Its NPR, economics is a tool of the oppressor. They don't want to pollute their pristine minds.

How come they can'... (Below threshold)
marc:
How come they can't figure out that energy costs are up because of the growing global economy,
How come they can't figure out their "record highs" are not adjusted for inflation? The record high occurred in the eighties.
They don't understand basic... (Below threshold)
Roy:

They don't understand basic economics at NPR, because they never went to those classes. They were in Womyn's studies and Gay Cinema and Multiculturalism classes instead - learning how to "FEEL" something, not how to understand something. They are progressive afterall.

They don't understand basic... (Below threshold)

They don't understand basic economics at NPR because they exist only because of government subsidy. Put them in the private sector and they would go dead air in a year.

HughS:NPR get the ... (Below threshold)
Rance:

HughS:

NPR get the bulk of its money from the production and distribution of radio programming. The amount that it gets from grants from government funded agencies ( CPB, NSF, NEA) is less than 2%.

Individual stations may get funding from government agencies, but lack of government support would not put much of a dent in NPR's budget.

RanceI would like to... (Below threshold)

Rance
I would like to see the NPR budget.

Subtract even 2% and....well, that's a good question: 2% of what?

Public radio, as it dominates and overlaps the spectrum (at what cost, I wonder) has been what ethanol is to multiple industries today.

A follow up...<a h... (Below threshold)

A follow up...

http://www.cpb.org/aboutcpb/financials/appropriation/justification_08-10.pdf

This report does not conform to GAAP, which would scare away 99.99% of investors if it were for a private sector company. That said, we can glean this: CPB (Corporation for Public Broadcasting) gets at least $400,000,000 in federal support.

I'll make this simple. Take that same amount....$400,000,000...and offer it free to Cumulus, Citadel, or Clear Channel and watch what they do with it. Or take it a step further and just eliminate it from the budget. CPB would fail. Spectrum sales would generate billions for the U S Treasury...but there is one hitch. Liberals would lose a big government funded mouthpiece.

This is but another of the holdovers from the 1960's that is a sacred cow of the left. And they are complaining about the fairness doctrine.


HughS,It's on-line... (Below threshold)
Rance:

HughS,

It's on-line.

It's on-line.... (Below threshold)

It's on-line...that's a relief! Thanks for the link....

HughS,You have con... (Below threshold)
Rance:

HughS,

You have confused The Corporation for Public Broadcasting (CPB) with National Public Radio.
They are not the same entity.

As for the link, try npr.org.

RanceExplain the dif... (Below threshold)

Rance
Explain the difference: specifically, funding from the fedral budget, funding from ANY government entity, spectrum control and local funding.
In short, explain to me how public radio finances and funds it's product.

While the booming global ec... (Below threshold)

While the booming global economy definitely keeps oil prices up, the upper range should be around $45 - historically high, but just over half where we are - based on the supply and demand, according to those who analyze the market.

The difference is because the market for the last five years has been a speculator's Perfect Storm. War in Iraq, Russia nationalized its biggest energy company, Nigerian labor strife, threats against Saudi fields, Venezuelan coup attempt, Iran seeks nukes, Nigerian rebellion, Russia plays energy hardball with former Republics and Europe, Venezuelan nationalizes oil industry, and a few others I'm sure I've forgotten.

The most recent run-up is due to lower than usual inventories in North America as winter approaches. If we get a mild winter, watch the price begin to drop. The speculators are way into profit right now, but they understand how the game works, and whenever the price begins a sharp decline, they will bail out as fast as they can and bank those profits.

The economic growth through much of the world despite the inflated commodity and energy markets shows the strongest world economy ever. When energy comes back down, we will witness tremendous growth that will bring another billion people out of poverty in a decade or less.

Geopolitical pitfalls remain, of course, from Russia's new imperialism to Islamic fascism to China's bid for regional hegemony to the resurgent cancer of Marxism in Latin America, but their effect on the world economy is a mere fraction of the drag imposed by the Cold War and the widespread socialist experimentation which has now reversed (with a few exceptions, true).

It's that law of supply-and... (Below threshold)
astigafa:

It's that law of supply-and-demand thing that neocons have so much trouble with. Scarcity drives the price of a commodity up, demand for the commodity makes it scarce, scarcity impedes access, impeded access slows growth -- but stay; I'm speaking to people who are convinced that the world is 6,000 years old.

Never mind; go watch Fox News.

I gotta defend NPR, it's no... (Below threshold)
Veeshir:

I gotta defend NPR, it's not that they can't understand these things, it's that they don't want to.
You see, if they were to acknowledge basice economic truisms, it would destroy their whole, "Socialism the way" ideals and we can't have reality intrude on lefties making themselves feel superior.

I'm waiting, Rance.=... (Below threshold)
kim:

I'm waiting, Rance.
===================

Compare astigafa's elegant ... (Below threshold)
kim:

Compare astigafa's elegant and nuanced comment at 8:51 AM with the ignorant Jim's(who is this guy anyway) hopelessly insightless post at 1:01 AM.
=========================================

asti, where the heck did yo... (Below threshold)
SCSIwuzzy:

asti, where the heck did you learn about supply and demand? If you paid for it, get your money back.
Demand does not create scarcity all on its lonesome.
In the case of the oil market, you are dealing with OPEC which can set both supply and price, which short circuits the supply/demand interaction.




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