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Not a Dip: A Demand Side Shock.

June 16th, 2008 · No Comments

Conventional wisdom is that Americans are slow to change their lifestyle in the face of adversity.   This evidence from USA Today suggests otherwise:

Americans drove 30 billion fewer miles from November through April than during the same period in 2006-07, the biggest such drop since the Iranian revolution led to gasoline supply shortages in 1979-80.

[…]

“It’s not a blip,” said Marilyn Brown, professor of energy policy at Georgia Tech, citing data showing surging transit ridership, dropping sales of sport-utility vehicles and sharply increased demand for gas-efficient vehicles. “I think the difference between now and 1979, when prices were comparable when you adjust for inflation, is there’s a sense of sustained pain. There’s a sense that the era of cheap energy is a thing of the past.”

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