Gas Prices vs The Recovery?

Apr 12 2011 @ 6:14pm

Gasoline is heading towards $4 a gallon. James Surowiecki says "it's not time to panic" yet:

This spike in prices, while annoying, is smaller and less likely to last than previous spikes. More important, the American economy is better prepared to deal with it. The oil shock of 2008 pushed Americans to buy fewer S.U.V.s and trucks, and more fuel-efficient vehicles, and the cash-for-clunkers program took hundreds of thousands of gas guzzlers off the road. On top of this, the downsizing of American car companies leaves them less exposed to drops in demand than they once were.