CNN: Gasoline has now hit its highest price ever, adjusted for inflation. Doesn’t free market economics tell us that automobiles should now, on average, get better mileage than ever? If so, why is the average 17 MPG, when the Model T Ford got 25 MPG? And when is it that minimum wage increase will go into effect?
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I would think that fuel efficiency is a lagging indicator and it will take a while for the change to happen. Meanwhile, as the price increases there will be an economic incentive to draw out fuel from places that were previously cost prohibitive. There are limits to how much conservation or new exploration can address the problem, but the recent price changes are most likely normal movements with predictable outcomes.
There are too many other factors in play for there to be anything approaching a direct relationship between inflation-adjusted gas prices and fleet-average fuel economy.
I heard something in the news a while back that the minimum wage increase that was heard a lot about during the Dem’s first few weeks didn’t survive. The last I heard the new minimum wage bill might get passed but the dem’s had to allow for some concessions for small business. Not sure what those were or what’s happening with it now.
http://news.yahoo.com/s/csm/20070521/ts_csm/aeuro
Check this out…dollar isn’t what it used to be. Thank you President Bush!