I'm starting to get the feeling we're going to be busy until November 2012:
Republican White House hopeful Newt Gingrich is calling for an “all-out” effort to expand U.S. oil-and-gas development that he alleges would bring down gasoline prices long before new supplies are produced.
via thehill.com
I suppose the idea is that expectations of low prices will cause suppliers to sell more now at high prices to avoid losing out when prices actually fall. The ECON 101 analysis is impeccable. Yet, new supplies won't do much to bring down prices (0% to 3%). The mistake is shifting the demand and supply curves too much.
