the important and the not-so-important, horribly conflated.

oil!

In the capital "e" economy on June 19, 2009 at 9:13 am

in this week’s new yorker, surowiecki looks at the interconnected phenomena of oil price spikes and, um, recessions.  “It wasn’t just that, as many people assume, higher gas prices functioned as a tax increase, taking money out of people’s pockets.” the author suggests. “More important was the fact that four-dollar-a-gallon gasoline dramatically changed the way people spent their money.” Oil up, SUV’s down, GM down, jobs down, housing down (overpriced, high-transportation-cost ‘burbs less attractive)… you get the picture. surowiecki argues that a gas tax could be implemented to soften the effect of future oil price spikes. yuck! tax! maybe if we called it recession insurance premiums…

oh, ps… a barrel’s over 70 buckeroos again.

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