I hesitated replying since this a little off topic and is politically
charged enough to get the flames flaring, however...
Last year's gas out, based on data from most analysts, was a total flop and
had NO impact on gas prices. The reduction in gas sales was no greater than
would have occurred if there had been bad weather on that day, a minor blip
on the oil companies' radar.
I'm a firm believer in free market principles. Just as OPEC (yes, I know
that a cartel skews the true free market equation towards the producer, but
supply and demand still operate) has every right to choose to reduce
production to push prices up, the consumer has every right to reduce
consumption to push prices down. However, most economists will tell you that
a 1, 2, or 3 day boycott will have MUCH less impact on prices than if
everyone reduced their consumption by 5% to 10% overall.
Another interesting thing to think about is that although most people don't
believe it, if you adjust US gas prices for inflation, gas prices (until the
recent runup) have been as low as they ever have been. For example, in
Kentucky we have recently been paying about $1.30 for regular. Adjusted for
inflation, that is equivalent to a 1960 price of $0.23
Finally, do you think that the vast numbers of SUVs sold in the last several
years, most of them getting 10-14MPG, has any impact on the demand side of
the supply/demand equation?
Jeff Nelson
Paducah, KY
1953 3600
oletrucks is devoted to Chevy and GM trucks built between 1941 and 1959
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