The Myth that Americans will buy gas no matter what the cost because they really like their car has been proven untrue. Research has shown that the cost of gas has reached a point that Americans are starting to take action. Some are attempting to avoid using gas and others are finding ways to conserve it.
The original thought was that Americans liked their gas guzzling vehicles enough to pay 4 to 5 dollars a gallon for fuel. But the latest research is showing that there is a 1.8% decrease in miles driven for the month of April. (Fox News) Any reasonable person would have seen this coming, people like their SUV but at the same time they would rather sustain their quality of life. In American pop culture, cars are high on the list but they are apparently trumped by other activities.
Just last week I saw in the news that GM is going to reduce their small truck and SUV production by half. This is a sign that the gas prices are taking their toll. When the free market shows a change in the sales of a product, that indicates the popularity of the product. It can also indicate that there is a cause outside the actual market effecting sales. It is sad that politics have affected one of America’s favorite markets; the auto industry may never be the same.
References:
Fox News
Soaring Prices Cuts Gasoline Consumption as Americans Drive Less, More Efficiently
http://www.foxnews.com/story/0,2933,368983,00.html
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