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To: C. Edmund Wright
Meanwhile, consumers travel more,

Not really. Gas prices are highly inelastic. The change in demand is very small in comparison to the (very frequent and sometimes very large) changes in gas prices.

Most won't cancel the weekend trip to the city just because gas prices went up, and wouldn't add one just because they fell. Most other transportation is non-optional. Driving to work/school, to the store, and to our entertainment choices is mostly the same as when gas was twice its current price just 4 years ago.

Your point is well-taken that if we spend less on energy, we have more to spend on other things ('we' meaning individuals AND businesses alike)... but I also wouldn't go insulting people and their 'conservative cred' for not having a macro-economics background.

23 posted on 11/13/2015 6:15:16 AM PST by Teacher317 (We have now sunk to a depth at which restatement of the obvious is the first duty of intelligent men)
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To: Teacher317

He’s comparing apples and oranges.

Take his 3 examples.

Travel more, eat out more, shop more.

If you added 1 job for each, motel help, restraint help, retail help the combined cost related to hiring these 3 people for a year wouldn’t cover the cost of the production tubing for a single well.

There are dozens of higher paying jobs than the 3 examples that are necessary in getting that tubing to the well.

There is simply no comparison to be made.


27 posted on 11/13/2015 7:25:27 AM PST by IMR 4350
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To: Teacher317

BULL....energy prices are inelastic on the short term...but NOT on the long term, and Not on vacation or business travel. Just wrong on that one.....


31 posted on 11/13/2015 4:12:00 PM PST by C. Edmund Wright (WTF? How Karl Rove and the Establishment Lost...Again (Amazon Best Seller))
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