Gas at $4 per Gallon
I have often wondered why auto makers did not continue to produce cars with high gas mileage and instead turned to creating a wide selection of SUVs to be driven not so much by camping enthusiasts but instead by soccer moms. Now, don’t you soccer moms out there get mad at me for saying that - I been in your role.
Steve Hargreaves from CNNMoney.com hopes gas will go up to $4 per gallon this summer. And I think he is on to something. It is a fundamental economic concept that capitalistic markets will charge the price the market will bear, and once consumers stop buying other companies will see further opportunity for developing alternatives. And petro prices would be forced to fall, although much of our fuel supply is out of our hands and I’m not sure how much of price relief we would experience.
Read Watch out: Here Comes $4 Gasoline for more on this perspective.
Tags: economicsRelated posts
Categorized as business/economics