Mises Economics Blog: Newsflash! Demand Curve Slopes Down!!

Mises Economics Blog: Newsflash! Demand Curve Slopes Down!!

Imagine that. Gas prices go up, and people cut back on driving. Some of my more clueless friends think that the only solution to high gas prices is price control and windfall profits taxes. There’s nothing like cutting back on driving and carpooling to drive up supply and gas prices down.

I say, to molify their moral indignation, that if you really want to stick it to the oil companies, you should car pool. That way they won’t be taking so much of your money. Now I realize that carpooling doesn’t really stick it to the oil companies, but my point is that if they are truly serious about doing something about gas prices, they can actually do something about it, and have an affect on what they spend on gasoline. I also realize, they aren’t truly serious about doing anything about gasoline prices, because they would rather see governments truly stick it to the oil companies so they can drive whenever they wish.

Am I cutting back? Yes. I’m telecommuting as much as I can. I’m avoid ing sitting in rush hour traffic and burning $3.00/gallon gasoline.

[Addendum: Read the comments of the posting I reference. There are problems in the USA Today article referenced therein, but as Carson notes, good points are made in the headline]

This entry was posted in Economics. Bookmark the permalink.

One Response to Mises Economics Blog: Newsflash! Demand Curve Slopes Down!!

  1. Pingback: Nomadicoder » Blog Archive » An after thought

Comments are closed.