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nathaniel

(cross-) price elasticity of demand

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gas consumption had to come back slightly from where it was with $4 prices, but the drop in SUV sales is going to be much longer lived. The 70s shock lasted through most of the 80s. People will drive out their suburban's life (they did pay 40k for it), but the next purchase will be different.

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Since it was Bush that made gas prices so high, we should give him credit for them being so low now!! Guys? Guys? No?:P



I don't consider gas being about as expensive as it's ever been in inflation adjused dollars since 1920 or 50% more than it was during the Clinton administration to be "low".

Currently, gas is averaging $3.17 gallon which ties the 1981 average which was the highest since 1920. For 50 of the last 100 years gas has been under $2.50 a gallon in current dollars.


http://inflationdata.com/inflation/images/charts/Oil/Gasoline_inflation_chart.htm


As a fun tangent, the rise in gas prices above $.50 a gallon in dollars (not inflation adjusted) started right after Vietnam got expensive and Nixon abandoned the gold peg ($35/ounce). Nixon was a Republican.

Republicans were in office when gas broke $.50 a gallon and $4 a gallon. Republicans and their optional wars correlate strongly to unprecidented gas price increases.

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Clearly we can blame this all on republicans. Doing so will get people elected and then they can solve all of our problems, like Hugo Chavez did for Venezuela.

Gass in my area is at or below $2 gallon. It was almost 4. If Bush made it $4, he must have also made it $2 again. People here said he did it, or does he only get blamed when things go bad?

Just kidding. I know the answer.
Oh, hello again!

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I'd say the management (Pres & Congress) gets blamed for the overall and general state of affairs.

#1 rule of management . . .

It's always your fault.
" . . . the lust for power can be just as completely satisfied by suggesting people into loving their servitude as by flogging them and kicking them into obedience." -- Aldous Huxley

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