Thirty cent jump in one day in Fort Wayne
Last week, oil expert Daniel Vila explained on News Talk Online on Paltalk how prices at the pump fluctuate because oil is traded as a commodity on the open market. Those prices, he says, are affected the same as the stock market by economic and geo-political issues.
That interview came at a time when oil was on a downswing. But now, oil prices are, once again, inching upward. Slightly crossing the $100-a-barrel mark two days in a row.
Not, says Cato Institute senior fellow Jerry Taylor, a reason to panic.
"There is strong empirical evidence to suggest that consumers invest efficiently in automotive fuel efficiency,” Taylor says.
Meaning, he says, short-run fluctuations may be obviated in the long run.
Taylor also says that high gasoline prices aren't causing as great an economic strain as many are led to believe. In fact, he says, on a per capita basis, the cost of gasoline, adjusted for inflation and changes in household income, is about what it has been since the end of World War II. Taylor says those who argue this could trigger a recession are overstating the impact of higher oil prices.
Finally, Taylor bets today's high prices won't last for long.
That interview came at a time when oil was on a downswing. But now, oil prices are, once again, inching upward. Slightly crossing the $100-a-barrel mark two days in a row.
Not, says Cato Institute senior fellow Jerry Taylor, a reason to panic.
"There is strong empirical evidence to suggest that consumers invest efficiently in automotive fuel efficiency,” Taylor says.
Meaning, he says, short-run fluctuations may be obviated in the long run.
Taylor also says that high gasoline prices aren't causing as great an economic strain as many are led to believe. In fact, he says, on a per capita basis, the cost of gasoline, adjusted for inflation and changes in household income, is about what it has been since the end of World War II. Taylor says those who argue this could trigger a recession are overstating the impact of higher oil prices.
Finally, Taylor bets today's high prices won't last for long.
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Photo credit: http://www.flickr.com/photos/photosbystan/
1 comment:
I have to travel out of town this week. I think I am gonna thumb it. LOL.
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