Saturday, March 17, 2012

Gas prices: do they really matter?

Although gas prices might seem to be a particularly salient issue to many people, Binyamin Applebaum of the New York Times seems to believe that they are merely one small factor in a much larger pool of issues.  Unless the presidential race is incredibly close between Obama and the Republican nominee, it is unlikely that gas prices will impact voters' decisions at the poll.  According to the article, only four percent of household income is spent at the pumps; in order for this number to increase by one percentage point, gas prices would have to increase by twenty-eight percent.  Despite the pain of watching the dollars add up on the meter, rising gas prices might actually have a relatively small impact on our overall finances.  If the prices continue to surge beyond reason, however, then issues could arises.

1 comment:

Greg Hyman said...

True that gas prices have a relatively small impact on overall finances, but a lot of ignorant people out there can't resist the urge to drive by a gas station every day and think that rising prices mean that we're all doomed and that oaf in the White House is sending us to hell in a handbasket.