Economists wary of falling energy prices

WASHINGTON – It should only be this simple: Oil prices plunge 20 percent, leading businesses and consumers to ramp up their spending, which gives a nice jolt to the economy. That seems to be the conventional wisdom on Wall Street right now, where the pullback in energy prices is being cheered by investors. But some contrarians think that view could be missing the point.

While the decline in prices will provide some relief to motorists, it also reflects the country’s weakening economic outlook. In other words, any benefit from falling pump prices may be outweighed by higher interest rates and a stagnating real-estate market.

Moreover, the economy did not crater in the face of soaring fuel prices