Gas Prices!
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Originally Posted by steven975,Jul 13 2004, 12:14 PM
neat graph. looks like about a .7-.8 correlation. that doesn't imply causation, btw.
i would imagine the two are somewhat related, but they clearly diverge.
Anyway, in real (economic jingo for inflation-adjusted, the only TRUE way to compare time periods) gas is CHEAP. In the early 80's, it was the equivalent of $3 a gallon. Gas prices are above average, but certainly not HIGH.
Another thing with comparing $ over time...several movies claim to be the highest grossing, boasting they beat star wars and what not. remember in 77 movies were like $3-$4...now they are $7-$12. When compared in real terms, star wars is #1 by a longggg shot.
i would imagine the two are somewhat related, but they clearly diverge.
Anyway, in real (economic jingo for inflation-adjusted, the only TRUE way to compare time periods) gas is CHEAP. In the early 80's, it was the equivalent of $3 a gallon. Gas prices are above average, but certainly not HIGH.
Another thing with comparing $ over time...several movies claim to be the highest grossing, boasting they beat star wars and what not. remember in 77 movies were like $3-$4...now they are $7-$12. When compared in real terms, star wars is #1 by a longggg shot.
I think this phenomenon is probably a proxy for "economic health". People make decisions with their wallet and for many people, certainly many that don't follow securities markets, gasoline prices are a decent economic indicator for their lives. Really, barring securities and interest rates what else would a middle class blue collar worker see that fluctuates as much as gas prices. In the short run at least, lower gas prices mean more real income for them.
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