Greenspan allays fuel fears

Although I pai more then $30 this morning to fill up my tank for the first time ever, Alan Greenspan puts it in perspective:

Greenspan, however, noted that even with the recent jump, energy prices are still only three-fifths as high, after adjusting for inflation, as they were at their all-time peak in February 1981.

He said this means that the overall impact on the economy should be lower this time around than during that period, when the oil shocks of the 1970s and early 1980s were enough to push the country into a series of recessions.

Greenspan said that so far this year, the rise in energy has probably trimmed the gross domestic product by about 0.75 percentage point, far less than the shocks of two decades ago.

Of course, these oil prices make hybrid vehicles and alternative energy sources seem much more attractive.