I Can't Afford My Gasoline

[Hart1]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">WRONG! The cost of goods goes up as direct reflection of the price of the fuel. It might not happen overnight, but it will happen. Truckers must pass on the added expense in their freight charges. </div></BLOCKQUOTE>

Good point, I agree that consumers will be impacted, to an extent. Would you not agree that the Cost of Living has not proportionately risen with the price of fuel in these past five years? At any rate, the author's claim is correct, IMHO.

Notwithstanding:

1. "Prices, properly measured, are nowhere near their historical peak. In fact, the long-term trend in oil, gas, and electricity prices is downward, not upward. "

2."If gas prices were as high today as they were in the late 1970s, we would now be paying about $6 a gallon for gas. Today's price at the pump is higher than it was as recently as 1985.
The same is true, by the way, for the cost of oil. Adjusted for wage growth, oil is slightly cheaper today than it was 20, 30, and 50 years ago, and five-times cheaper than 100 years ago. How can gas and oil be cheaper since we've used so much of it over time? Well, thanks to human innovation, we are always finding new sources of oil, while at the same time technology makes it cheaper to drill for it. "

3. "The oil cartel, OPEC, holds the world price at least twice what it would be if there were a competitive marketplace at play. After all, in Saudi Arabia and many other oil-producing nations, oil costs about 50 cents per barrel to produce. "