Socialists at Reuters Baffled by Economics

Well, the socialists at Reuters are demonstrating their economic ignorance again.

Americans would hit brakes if gas hits $3.50: poll

NEW YORK (Reuters) - Some 40 percent of Americans would curb their driving habits if retail gasoline prices shot up to $3.50 a gallon, according to a Reuters/Zogby poll released on Wednesday.

Hey Reuters editors, put down the Das Kapital for a minute and try reading Milton Friedman for once in your life.

In the real world, people make their purchasing decisions "at the margin", which means we consider our options relative to our income and the strength of need, and buy accordingly. Each of us has our own price break points. That means that there is no specific target price at which "people" will change their behavior. Folks are making purchase decisions all the time. That is called the "free market system" which I know sends shudders down your spine just at the sound of it.

So Reuters, try reading up on "elasticity of demand", have someone explain the words longer than two syllables to you, and then come play again.