John Stossel has a column in which he rightly points out that (1) TV news reporting on gasoline stinks, and (2) the price of gasoline, adjusted for inflation, isn’t anywhere near the all time high. Stossel then goes on to rave about “what a bargain we’re getting from oil companies.”
It’s true that gas is still relatively “cheap.” But we are still paying a lot more than two years ago. And that’s new spending which is being taking away from other sectors of the economy. Sooner or later, that’s going to take a toll. Over the past 50 years, there’s a pretty strong correlation between oil price spikes and bear markets. So this really is a news story.
I wonder if Stossel would still be writing on how “cheap” gas was if the federal government suddenly slapped a 25 cent/gallon tax on it.