True or False?
By David Henderson
Econlog is a blog devoted to economics education. So here’s a quote from a recent book.
Being producers, the advisory group was more concerned with increasing production–for instance, by opening up the Arctic to more development–which would presumably increase its profit, than with conservation. It was a policy which put America’s security at risk because it means more money goes to the Middle Eastern oil countries that fund terrorism, and because higher oil prices weaken the U.S. economy while benefiting the oil companies.
So the author is saying that higher production of oil leads to higher oil prices. Is that claim true or false?
I won’t tell you the author. That’s irrelevant to judging the claim. I’ll save that for a later post, although in this world of Google, that’s not hard to find.