Replies

--I can't help but notice the same people who think Wal-Mart prices are too low think gas prices are too high--

When you say "gas prices are too high", it begs the question "too high in relation to what?" Clearly, from one angle gas prices are set by a variety of market conditions and are supported at a level that the international market will support. There are some stupid government tricks that come into play to raise such prices beyond a purely market price (taxes, restrictions on refineries by environmentalists, etc) but the price is still essentially market driven.

From another perspective, however, gas prices are "too high." That perspective is one of "gas prices are too high for Americans to maintain our standard of living." If current trends continue, gas prices will remain too high for the kid in high school to go cruising in a Mustang on a Saturday night. They will be too high for a family to drive to the lake on a weekend and spend that weekend on their motorboat. They will be too high for commuters to live in a quality suburb and deal with that 40 mile round trip commute on a daily basis.

When two unlike systems have enough complex interactions for a long enough period of time, equilibrium is the inevitable result. Economics is not immune to this rule.

The dilution of the middle class standard of living is a cause of concern for many in America and is the motive behind books/articles such as this.