« Why Would the Gasoline Prices Go Down? | Main | China’s Inflation and the World Economy »

Sep18
Oil Prices and Politicians

The falling gasoline prices have become a hot topic this week; most of the people seem to agree that the market supply and demand theory cannot explain the ups and downs of the gasoline price. There must be something else, some other explanations behind this drama, and one of them, according to my students, is the consideration of the November election. 

 

It is said that politicians in realized that the price of gasoline would affect which party would control the Congress of the U.S. in the coming elections. Since the high oil prices would cause the public to complain, Republicans are very happy to see the gasoline price drop about 50 cents per gallon.

 

I hope more elections will take place in the U.S., if that can keep gasoline prices down.

 

 

 

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Would the oil price ever go down to $1.50? How about $2.00? Or just about $2.50? It will be good for the whole economy if the price is low.

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