High Costs Affect Growth
Higher energy costs and unrest in the global energy marketplace are threatening Indiana’s economy and growth. Without a secure and steady flow of oil from a nearby source, Indiana’s dominant industry -- manufacturing -- could take a serious hit.
Ball State University recently released a report, entitled, “The Effect of Higher Fuel Prices on Indiana’s Economy.” This report issues a stark warning: if the expected increase in gas prices takes place, Indiana could see a rise in unemployment as well as a decrease in state revenue.
According to the report, the last time a similar gas price increase took place, it preceded the stock market crash (September 2008) by nearly a year.
Indiana was hit especially hard during this economic downturn due to fact the state’s major industries — including car and recreational vehicle manufacturing — depend heavily on oil. The last major layoff in Elkhart County, the home of significant manufacturing, took place a month before the collapse of Lehman Brothers— the first red flag of the impending economic crisis.
Access to Canadian oil sands means a steady supply of energy and stable input costs for Hoosier manufacturers and farmers. This also helps every consumer, employer and family in America, because when input costs for farmers and manufacturers rise, there is a trickle down effect. A consistent flow of oil from our neighbor to the north helps to ensure Indiana’s employers have the resources they need, when they need them, to succeed.
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