Who “Ate” the American Pie of Productivity?

The US imports about 12 million barrels of oil a day, and at USD $130 a barrel -- no one knows where the price is going to stabilize at; it could go higher or lower – the US oil-import bill stands at about 4 percent of the US GDP, almost USD $600 billion. And for the US, this oil-import bill has got doubled over the last year. Previously, oil-import bill was of 2 percent of the GDP and now it has gone up to 4 percent of the GDP.

And, as the US productivity is up on the average, around two years of the GDP, this rise in the oil prices would COST the US a whole year's productivity gain!!