Is there a connection between the lower gas prices this last month or so and the upcoming election? Once the election is over will prices rise again?
The price of gasoline, along with everything else for that matter, will continue to rise over time. When I was a kid, a Hershey bar that costs 89¢ today was 5¢. A bus ride that is now $1.50 was 10¢.
Will gas prices rocket back to $4 per gallon immediately after the election? No, not at all. They will probably continue to slide somewhat, driven by significantly reduced demand and a strengthening dollar both of which are results of the current economic turmoil.
Will gas prices eventually return to $4 per gallon? Yes, eventually they will. If gas prices keep pace with inflation they may well double in 8 to 12 years. Though honestly, if gas prices had kept pace with inflation since 1981, they’d average just under $4 a gallon right now so the roughly $2 we’re seeing here in MO is about half of what it should be. If prices had steadily risen since 1981 to $4 a gallon today, nobody would take notice of it at all. In 1981 you could buy a new mid-sized car for less than $8,000. A similar model will set you back close to $20,000 today and nobody seems to notice or care.
One thing that may stabilize is the stock markets. Even if the market doesn’t “like” the choice (and that could go either way with both McCain and Obama by the way) at least the speculation will be over. This has a stabilizing and calming effect on market volatility. The devil you know is always preferable to the one you don’t know.
November 4th, 2008 at 3:54 am
No, the election has nothing to do with it - financial turmoil all over the world has. OPEC cut supply with I believe 15% and markets didn’t care. It’s all financial.
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November 4th, 2008 at 4:02 am
Yes the gas prices will go up after election.
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November 4th, 2008 at 4:14 am
The price of gasoline, along with everything else for that matter, will continue to rise over time. When I was a kid, a Hershey bar that costs 89¢ today was 5¢. A bus ride that is now $1.50 was 10¢.
Will gas prices rocket back to $4 per gallon immediately after the election? No, not at all. They will probably continue to slide somewhat, driven by significantly reduced demand and a strengthening dollar both of which are results of the current economic turmoil.
Will gas prices eventually return to $4 per gallon? Yes, eventually they will. If gas prices keep pace with inflation they may well double in 8 to 12 years. Though honestly, if gas prices had kept pace with inflation since 1981, they’d average just under $4 a gallon right now so the roughly $2 we’re seeing here in MO is about half of what it should be. If prices had steadily risen since 1981 to $4 a gallon today, nobody would take notice of it at all. In 1981 you could buy a new mid-sized car for less than $8,000. A similar model will set you back close to $20,000 today and nobody seems to notice or care.
One thing that may stabilize is the stock markets. Even if the market doesn’t “like” the choice (and that could go either way with both McCain and Obama by the way) at least the speculation will be over. This has a stabilizing and calming effect on market volatility. The devil you know is always preferable to the one you don’t know.
References :