Economist sees good news in gas prices

Las Vegas – Speaking here at the International Builders’ Show during a press conference on housing starts, Nationwide Insurance Chief Economist David Berson made himself clear on the issue of declining gas prices.

“The drop of oil prices is unambiguously good for the U.S. economy, even if there are regional markets that will be impacted,” he said.

While North Dakota and Texas have benefited from oil industry bonanzas, and some analysts see dangers in low oil prices, Berson wasn’t buying it. The net result of low prices at the pump will act as a tax break for the vast majority of Americans.

Berson’s outlook on oil was echoed by David Crowe, chief economist for the National Association of Home Builders.

“Even for those states where energy is a primary motivation behind employment, it’s not a significant portion of the economy,” Crowe said.

The two economists were part of a panel discussing the 2015 housing forecast during IBS, which came to a close last week.

In the Jan. 27 update of the American Automobile Association Fuel Gauge, the average price of a gallon of regular was $2.038. That’s down 37.9% from $3.282 one year ago.