When Obama entered the White House in January 2009, the city average price for one gallon of regular unleaded gasoline was $1.79, according to the Bureau of Labor Statistics. The figures are in nominal dollars: not adjusted for inflation. Five months later in June, unleaded gasoline was $2.26 per gallon, an increase of 26 percent. By December 2011, the price of regular unleaded gas per gallon was $3.28, an 83 percent increase from January 2009. Why? Good question. Basic economics provides the answer in terms of a "supply and demand model." Solution is simply to "drill, baby drill." However, since the vast majority of Americans are economic illiterate, this simple solution does not registered with their "gray cells."
No comments:
Post a Comment