Even when adjusted for inflation fuel prices are approaching all-time highs. Yet despite the fact that fuel prices impact nearly ever facet of our economy economic growth has continued unabated. Why is that?
The Kipplinger Letter offers an explanation:
Only 3% of global income is spent on energy, compared with about 8% just two decades ago, making economies less vulnerable to oil spikes.
That's a significant drop.
There is no doubt that America, along with other countries around the globe, are using more and more oil each year. Yet the reality is that the oil being used is being used more efficiently.