Oil prices have reached record highs earlier in the week. Price hikes have caused much speculation regarding the fickle world economy. Estimations of world economic growth have been estimated to reach 5%. However, with oil prices surging, many economists fear that growth may be replaced by decline. Federal Reserve Bank President Robert McTeer feels that although oil prices are rising the economy is safe from the impact of high oil prices. McTeer compares the price hikes of today to the price hikes in the 70’s. One major difference between the seventies (which resulted in economic burden) crisis and the oil problems today is supply. The price hikes in the seventies was do to a shortage of oil. Today the prices today are caused by demand. Therefore, oil prices are not damaging the economy. Prices aren’t dictated by a shortage of supply, rather the life style of larger cars and other factors that contribute to high demand.