Denise Tiller, Midwest Voices 2008
While gas prices keep creeping up, other people have it worse. According to the last Weekly Telegraph from London, unleaded is selling at 117p a liter. Given that a liter is a little more than a quart and a pound is a bit more than $2.00, their gas is about $10 a gallon. I guess it could be worse.
Denise Tiller, Midwest Voices 2008









Actually there's a VERY simple solution. The cure for high prices is high prices. When gas is a dollar a gallon, SUVs make sense, and that's what Detroit builds. OPEC gets rich because the oil costs them very little to extract. When gas is ten dollars a gallon, 80 mpg makes sense (and I remind you that there are 80 mpg vehicles on the road right now). OPEC gets REALLY rich.
But that's short run. In the long run, the market fills up with 80 mpg vehicles-we don't even have to consider the possibility of alternate fuels and 200-mpg fantasies.
Now OPEC's in trouble. India and China motorize, but instead of a 20-mpg world fleet average we've got a 60-mpg world fleet average.
None of this will happen even if we go back somehow to dollar a gallon gas. Detroit goes back to making ten-cylinder F 350's and OPEC stays rich forever. Trust the free market to respond to price gouging, and don't get panicked by short-run market disruptions into selling the milk cow.