Rising Oil Prices Could Spark Recession

If history is any guide, the U.S. economy should be sliding into a recession right now, after being hit with one of the biggest jumps in oil prices since the 1970s.

Since the end of World War II, every major spike in oil prices – until now – has led to steep increases in inflation, massive layoffs in oil-dependent industries and sharp cutbacks in retail spending, ultimately culminating in recession.

The link between oil spikes and recession seemed so clear that in a Wall Street Journal poll in October, a third of the economists surveyed predicted recession would ensue if oil traded for weeks on end between $50 and $59.
The State Journal-Register