In my business, it turns out that there is greater sensitivity to gas prices than I thought.

In mid-May, when gas prices shot up, sales suffered, and they didn’t really recover until around the end of June. Thinking back to a big shocking event like say, 9/11 (and other than a shock and the time required to get back to a “new normal”, I’m not drawing any equivalence to the two events) it took about six to eight weeks to shake it off and go on.

But while the gas shock was happening, I was surprised at the level that everything slowed down. My thought was not that gas prices are super abnormally high, but rather they are working back to where THEY SHOULD BE. And not from some global-warming nonsense perspective, but the price that would be adjusted for inflation on what I paid for gas in high school.

In thinking about what I paid for gas in the 1980’s, what would gas prices be today when adjusting for inflation? About what they were a couple of weeks ago.

This article written by two guys with more number crunching time than I try to make my point. The “new normal” is actually the normal. It turns out that the last ten years were what was abnormal.