Back in the late 1970s and early '80s, the small car was king. We rejected the huge behemoths Detroit was turning out with their great weight, large tail fins and low gasoline mileage. Well, we don't have tail fins today. We have gas-guzzling sport utility vehicles or SUVs. Instead, they are right on your tail in heavy traffic with the driver yakking on a cell phone.
Nobody wants to buy small cars.
The big auto manufacturers must often sell them at a loss so their entire product line can meet government-mandated gasoline mileage limits. One of the reasons why profits are so good in the airline business today is low jet fuel prices. Generally, low oil prices are great for the economy as a whole. One of the reasons for the great burst of prosperity in the Reagan presidency years is the now-documented plot by the United States and Saudi Arabia to drive down oil prices. They didn't do it to boost our economy but to help ruin the Soviet Union, which was heavily dependent on sales of oil and natural gas to Western nations.