The Media looks at the price of gas, but not the overall cost of energy comparied to income.
But what's more interesting about these stories is what they don't tell you. For example, the Associated Press reports that "surveys indicate drivers won't be easing off on their mileage, using even more gas than a year ago." Now why is that? If prices are rising, one would expect consumers would use less.
The answer might be in some of the long-term trends that the short-term media lens is too cramped to see. Energy prices may be rising, but energy itself is much less important to consumers and to the overall economy than it once was.
According to the Bureau of Economic Affairs ( see chart here), American consumer spending on energy as a fraction of total personal consumption has declined considerably since 1980. Whereas 25 years ago, one in every ten consumer dollars was spent on energy, today it's one in every 16. In other words, what it takes to heat and cool our homes and drive to and from our jobs and vacation destinations is relatively less costly than it was then.
The same media scenerio plays out with cancer. We keep hearing about rising cancer rates and theories that everything causes cancer. Meanwhile, American longevity has increased so much in the last century that Social Security is bankrupting us.
1 comment:
Good observation, Tom. To get the long view on anything, you have to read books. The TV/radio/news media can't or won't deliver.
Post a Comment