Somalia screwed as oil prices destroy Saudi economy

[TheAnswer]

http://www.npr.org/sections/paralle...is-as-low-oil-prices-trim-government-benefits

It's "end to the era of plenty" as Saudi gov slashes subsidies and announce new taxes...
Saudi economy is starting its long descent to hell....will Somalia's economy go with them? They buy all our livestock. Is anyone worried about this?

 

[Thegoodshepherd]

It is actually a great thing. 50% lower energy prices than one year ago means a huge rise in Somali quality of life. Saudi Arabia is not so poor that they will decrease their consumption of meat due to a fall in oil prices. The government takes the bread part of "bread and circuses" quite seriously in Saudi Arabia. They saw what happened in other arab countries in 2011 when food prices shot up.

 

[TheAnswer]

It is actually a great thing. 50% lower energy prices than one year ago means a huge rise in Somali quality of life. Saudi Arabia is not so poor that they will decrease their consumption of meat due to a fall in oil prices. The government takes the bread part of "bread and circuses" quite seriously in Saudi Arabia. They saw what happened in other arab countries in 2011 when food prices shot up.

Maybe not today, but what can we say in 5 or 10 years? Many economists are saying that oil prices may stay low for that long. And if they do, Saudi Arabia will long have since depleted its sovereign wealth fund and average Saudis might be in for a diet change.