Wednesday, December 17, 2008

Power of the people

In case you missed it, gas prices have dropped to below $1.75 a gallon. This is a classic example of 'supply and demand' economics. When the price went up, people started thinking about how to cut down on travel. As the result of this reduction in travel, the oil companies experienced a glut of oil and 'you can't eat oil'.

More importantly, it shows what happens when people display their economic muscle. Without a significant organized 'movement', Consumers let the oil companies feel their might where it matters most.

No comments:

Post a Comment