Aufsätze Ökonomik

Aufsätze Pädagogik

Aufsätze Sozialethik


Prof. Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.

Abhandlungen über Johann Heinrich Jung-Stilling

Nachtodliche Belehrungen zur Ökonomik

Nachtodliche Belehrungen zu Persönlichkeiten

Nachtodliche Belehrungen zur Philosophie

Nachtodliche Belehrungen zur Theologie

Nachtodliche Belehrungen zu verschiedenen Themen


Crude oil price compensation

The public and, above all, the trade unions repeatedly call for higher wages when the cost of living has risen for the car-driving masses as a result of higher gasoline prices. – The increase in the price of oil, however, is a transfer of real income to foreign countries: money that can no longer be distributed domestically. To use the language of financial journalists, it has been “swallowed up”. In this respect, an “offset” would immediately lead to inflation. – Moreover, such an equalization of purchasing power would violate the Second Price Law (high price – pushes back the demand [here especially also: by more economical use of oil] and – attracts the supply of the good as well as – the production of the substitute [here for example: nuclear power, coal, wind turbines, solar panels, electric motors]) out of force, which is contrary to economic reason. – See biofuels, petroleum inflation, petroleum price, inflation compensation, purchasing power compensation, climate inflation, wage, indexed, wage-price spiral, oil bulletin, oil price, petrodollar, protein inflation, real cash effect, ripples, electricity price, second-round effects. – Cf. ECB Monthly Bulletin of July 2004, p. 32 (second-round effects), ECB Monthly Bulletin of July 2005, p. 14 ff. (analysis of the effects of a price increase; tables), ECB Monthly Bulletin of February 2006, p. 38 ff. (pass-through to the HICP; price elasticities; pp. 41: empirical rule of thumb: 10 percent increase in oil price leads directly to 1.5 percent increase in consumer prices), ECB Monthly Bulletin of November 2006, p. 15 (trade balance surpluses among oil-exporting countries), ECB Monthly Bulletin of January 2012, p. 49 f. (annual oil price increases of just over five percent absorb income growth; explanations).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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