Why Are Experts Confounded
The sub-headline for this WaPo article on the influence of gas prices on driver's behavior is "Confounding the Experts, A Poll Finds Prices Must Go Way Higher to Alter Driving".
Why are the experts surprised that gasoline demand is basically inelastic? I thought they were the so-called experts, yet they seem to miss the fact that American daily life is utterly tied to the automobile. People don't move around on public transportation. They don't walk or cycle. They jump in their car and drive, Mr. Expert!
I doubt that a tipping point exists at $4/gallon either. If gas prices continue to rise, consumers will consume less of other stuff. They won't stop buying gas because that would mean they stop their life.
The media coverage of gas prices is already starting to annoy the hell out of me. Congress wants to blame oil companies. Right wingers want to blame environmentalists for preventing refinery construction. Nobody is talking about the real problems: tight energy supply and US car culture.
