Had anyone said a few months ago that the federal government would step in to provide a trillion dollars to subsidize gasoline—to bring it down to $1.85 a gallon nationwide from prices that were exceeding $4 a gallon—we would have had a national debate. And yet as quietly as the Iraq war cooled down and was ignored, so too we think nothing of the hundreds of billions of dollars saved in reduced energy costs. For the average driver who puts 15,000 miles on his car per year, the annual savings (depending on regional prices, miles per gallon, and the amount and type of miles driven) could reach $1500-2000.
Or contemplate again: What if the Chinese had announced three years ago that in a spirit of good will they would begin buying trillions of US Treasury bond at a .5% interest rather than the 3-5% of the recent past. The result, of course, would be a multi-billion-dollar stimulus for the indebted US economy that would enjoy a temporary reprieve from the cost of its indebtedness. (Remember, in the Carter years T-bills and US bonds were paying out 8-12% and more).
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