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Originally Posted by Hobbs
Just an observation here...
There is a trend in the gas market that everyone seems to miss. At one point, we are paying $1.50 then it climbs to $1.80 and everyone complains. It drops but not past $1.70. Everyone is happy they're not paying $1.80 anymore but don't really complain we are now paying $0.20 more for gas than we were a few months ago.
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Yes, everyone complains using emotion. However the facts are supported by what they actually do. You don't see SUV sales plummeting. Maybe the largest 8 MPG models are not selling as much. But even in The Cellar, one buys a low performance gas guzzler and justifies it by saying he does not drive much.
When gas was really cheap in 1970, it was about $0.34 per gallon. That is about $1.70 in 2005 dollars according to numbers from the Bureau for Labor Statistics. So when gasoline went from about $1.00 per gallon to $1.40 and so many were complaining even here, well, how many really changed anything? IOW they were being emotional. Logically, price of gasoline was still so low, as demonstrated by their actions.
According to a government chart, gasoline in 1980 was about $1.35 per gallon. This translates to maybe $3.50 per gallon. It was only then that Americans did any life style changes. Whether change was due to gas prices could be debated because jobs had all but disappeared. Stagflation, federal government money games, and the cost of a Vietnam War also were appearing in spread sheets as a lagging economic indicator.
It did not much help that at least one American car would not start in a parking lot every cold day. Things were failing that frequently causing significant attitude changes in Americans.
The point is, gasoline is not high enough until even GM starts doing innovation such as hybrids and fires top management who do not even drive. Management so myopic, technically naive, and anti-GM as to even promote hydrogen as a fuel. Currently the nation is going about business today as if gas prices were same as in 1999 - less than $1 per gallon. Gas prices are still that low.
Don't listen to the hype about high gas prices. Look at what people actually do. Currently, prices are still quite low as demonstrated by economic numbers that will not show the downside of high gas prices for years. IOW Deja Vue.