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What to do about the gas 'crisis': maybe nothing.(PUBLIC POLICY)
DESPITE what you may have heard, oil and gasoline prices have yet to reach record levels--once we adjust for inflation. Even so, the gasoline price spike that began in the fall of 2002 is the second most dramatic in American economic history--steeper than those in 1973, 1990, and 2000, and nearly as great as that experienced between 1979 and 1981. A back-of-the-envelope calculation finds that the average household today spends between $63 and $79 a month more for gasoline than it did just three years ago.
Perhaps the absence of an identifiable villain has dampened political outrage. Oil companies are making record profits, but there's no evidence that they're ...
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