10/31/2004

"The oil-rich keep on getting richer"

Many Americans have chosen the SUV as their mode of transportation and those that control the oil market are absolutely loving it. The cost to fill up an SUV compared to a small economic- friendly vehicle is taking its toll on those consumers. With the prices being at the current, there may no longer be an economic-friendly vehicle, no matter what the size. In an article written in the Salt Lake Tribune, the author writes that "market constraints underlying high and volatile energy prices suggest that higher oil prices could be here to stay." The higher oil prices may have an impact on your next vehicle purchase, but American's are a "drive-at-any-price" culture and we will still continue to pay for the gas because of our dependence on our vehicles. With our culture being so dependent of car's, those that own and control the oil industry will continue to reep the reward and we will continue to pay the high price.

6 comments:

Ernie said...

If someone wants to drive an SUV, I don't think that there should be a federal case made of it. Sure, it would be nice if everyone drove a hybrid, but not everyone has the same tastes and preferences. Also, I don't think that these high oil prices are here to stay in the long-run.

Dr. Tufte said...

-2 for spelling mistakes and no link in Jake's post.

The posts and comments are not good examples of thinking like economists. If you think it is irrational for people to buy SUVs, and they are buying them anyway, then you need to figure out why that is in fact rational. Obviously gas prices are going to influence that decision, but really, who do you know that bought a car on the basis of the price of gas?

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