Why The Pump Isn't More Painful According to the article energy expense as a percentage of GDP has dropped dramatically which accounts for the inelasticity of demand at the pump. That's all well and good but in the end, people have fixed expenses when it comes to fuel. Yes I may think twice about going hither or yon given the cost of fuel, but I still have to get to work every day which acccounts for probably 80% of my cost. Likewise, truckers have to pull their loads and no increase in cost of fuel is going to decrease that demand. (Theoretically there is an upper limit but I can't imagine where it might be).

This war for oil seems like a bum deal to me. I'm paying now more than ever three years after we conquered a peaceable, non-threatening nation for their oil. Maybe someone can explain it to me.


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