Funny thing about the economy. To use a hackneyed reference, it is like the weather, as in everyone talks about it, but what is somewhat different is that it is not the case that they don’t do anything about it. (Which leads to a thought: if somewhat talks about the weather, just what is it that they’re supposed to do about it?) People piss and moan about high prices, so what do they do? Spend more. And I don’t just mean spend more from the standpoint that the prices are increased and consequently they need to spend more, but from the POV that they buy more stuff because they have more money.
“What!?” you sputter.
The Bureau of Economic Analysis reports that in May 2022 (reported June 30, 2022, because it takes some time to collect and crunch the numbers) “Personal income increased $113.4 billion (0.5 percent).” What’s more, “Disposable personal income (DPI) increased $96.5 billion (0.5 percent) and personal consumption expenditures (PCE) increased $32.7 billion (0.2 percent).”
Who would have thought this is the case?
Gasoline prices are one of the things that there is much consternation about. While some note that adjusted for inflation gas was more expensive back in the summer of 2008, we drive in the present, not the past, so that is sort of a specious point.
But as you may recall from Econ 101 there is a little thing called “supply and demand” and despite the fact that oil companies across the board have exhibited themselves to be shitheels as they rack up profits, there is this:
According to the Federal Reserve, Americans drove 2,849,147 miles in February 2021 and as of April (again, the latest numbers for now) 3,271,946.
More demand, limited supply, increased price.