It’s one of those myths that just won’t die. Those interested in the economy are well aware of it, but most often are unaware that it's a myth. It’s the one about the 1973 Arab oil embargo's impact on U.S. energy costs.
The Wall Street Journal’s Jon Hilsenrath is the latest to promote the fiction that rising prices of crude in the 1970s were an effect of “a shock in the supply of a crucial commodity” when “OPEC embargoed sales of energy supply to the U.S.” Hilsenrath claims the latter resulted in higher prices for U.S. consumers. Except that it didn’t.
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