Oil broke down again to levels not seen since the Great Recession on Thursday, but Jim Cramer wasn't worried.
The last time oil traded in the low $30s was in December of 2008. However, that swoon was caused by a decline in demand, thus Cramer did not consider this to be a fair comparison. Current issues stem from a massive supply glut, which remind Cramer more of the early 2000s when crude was plentiful and traded at $20 a barrel.
Many traders view oil's decline as a sign that the world's economies are falling apart. They are worried that the declines in the energy sector will overwhelm the rest of economy, despite the fact that higher oil and gas prices are actually bad for most businesses.
The bottom line is that most businesses are getting a gigantic boost from the decline in oil.
"That's good, not bad. Go ask the Fed, which would love to see raw costs go lower so it doesn't have to tighten aggressively," Cramer said.
So things are not great right now with the issues in China and the Fed raising rates. But maybe it won't be the end of the oil industry if the price of crude plunges to the $20s.
"If oil's weakness is a sign of anything, it's going to be of economic strength for 317 million Americans who use some form of energy in their day-to-day lives, even as those who toil in the oil patch won't be able to make up their own economic losses," Cramer said.
Ultimately, most people are energy consumers — not producers. And sooner or later the companies that benefit from lower oil will see their stocks benefit, too.