NationStates Jolt Archive

I have a question for those in the US with a knowledge of economics.

The rising gas prices seem to be a big deal at the moment, but couldn't that be blamed on inflation?

I mean, the price of everything goes up gradually, including gas, it was bound to happen.

So, is the rise unrelated to inflation, or are people just making a mountain out of a molehill?

Ummm...I'm no expert.

But if inflation increased, wouldn't the cost of pretty much everything go up? Gas prices, wheat prices, computer prices, etc.

Gas prices are far more volatile and the rate at which they've been rising lately is far faster than the rate of inflation.

I heard Bush met with the Saudi's, and they are going to up oil production.....can anyone confirm this?

It's a few factors. Inflation is only one, and as it isn't even as bad as the inflation of the nineties, we can't be as hasty to blame it on that. I'd rather blame it on relatively low stocks of gas in the US, and an increased demand from China. Back in 2002, they were a net exporter of oil. Today, they import 5 million barrels a day, second only to the US.
We can also blame, if one can see merit in this arguement, low oil reserves.

its because of iraq

I heard Bush met with the Saudi's, and they are going to up oil production.....can anyone confirm this?They might, but even if they do, world consumption is growing so much that it won't make an appreciable dent in prices.

I heard Bush met with the Saudi's, and they are going to up oil production.....can anyone confirm this?They might, but even if they do, world consumption is growing so much that it won't make an appreciable dent in prices.

Dare I suggest ANWR? Heh.