Comments: Why the dog of high oil prices is not barking

Interesting observation and explains nicely the lack of 'panic' about oil prices. While the numbers may look good what about people.

So this is how it will play out. Petrol prices will go up, and for those with means it is only a slight inconvenience, in fact, they will benefit because there will be less cars on the road. Those who will feel the pinch, will abandon their cars for public transport, this will also be seen as a good thing. But, and here's the rub, those at the bottom of the socio-economic ladder will be dealt another blow as the prices of essential good and services goes up.

But this suffering will not be reflected in the figures on economic growth which will still look good, and the politicians will tell everyone who will listen about how well they are managing the economy.

The threat is that most economists seem to miss is that the number of people at the bottom is inreasing.

Posted by DavidMills at September 14, 2005 02:07 AM