----- Original Message ----- From: "Standing Bear" <[EMAIL PROTECTED]> To: <[email protected]> Sent: Thursday, September 29, 2005 12:56 AM Subject: Re: The Grip of Gas
> On Tuesday 27 September 2005 17:47, Jed Rothwell wrote: > > Michael Foster wrote: > > >I have a number of personal observations that seem to illuminate what you > > >are talking about. I noticed that the general level of traffic in the Los > > >Angeles > > >area dropped off rather dramatically when the price of gasoline exceeded > > >about $2.50/gal. . . . > > > > Yes, there is anecdotal evidence like that coming in from all over. And it > > is not merely an impression. Actual consumption dropped from 9.4 million > > gallons to 8.8 million gallons. (See the N. Y. Times article I referenced.) > > > > Some other straws in the wind: An Atlanta GM car dealership recently had > > the compact cars moved out in front of the lot with large, handmade signs > > saying "30 MPG!" Toyota is bombarding cable channels with advertisements > > featuring their high MPG models, including the Prius, again with big > > letters announcing "35 MPG" and "60 MPG" (way ahead of GM). These are > > cheesy advertisements that look like they were ginned up in a hurry, with a > > soundtrack of children cheering in the background. > > > > >The traffic level seemed to recover about two weeks after that. > > > > Unfortunately, consumers may get used to these prices and go back to their > > old habits. This will do nothing to solve the problem, and it will suck a > > great discretionary income out of the economy. It works like the parable of > > the frog in hot water (water that is gradually heated). PLEASE NOTE that is > > merely a parable, no more true than Aesop's fables about talking foxes. A > > real frog will jump out of the pot as soon as the water becomes > > uncomfortably warm. People, on the other hand . . . > > > > I hate to see the public suffer, especially poor people who have to commute > > to work in old gas guzzlers, but for the good of the country and the > > environment I wish the government would impose a tax to raise the price to > > $4 per gallon permanently. The tax would increase to $1.50 if the base > > price falls to $2.50. I wish the leaders would tell the citizens that oil > > is running out, and it is time to make sacrifices and make changes. Plus it > > should say we can solve this problem with new technology such as plug-in > > hybrids, we do not have to wait 40 years for hydrogen cars. > > > > Even the oil company advertisements now say that we are extracting oil > > twice as fast as we are finding new reserves, and I think they are lying. > > As others have pointed out here, OPEC members and major oil companies are > > probably exaggerating reserves by a large margin. OPEC members do this so > > that OPEC will give them a larger market allocation, and oil companies do > > it to prop up their stock prices. There have been no substantial > > discoveries of oil in the lower 48 states since the 1930s, and there never > > will be. There is no more oil waiting to be found anywhere on earth. Of > > course improved extraction techniques will stretch out supplies. > > > > - Jed > > All that four dollar gas price is going to do is guarantee a depression and > radicalization of our politics as the poor finally are driven to find their > voice. The better solution and a better one for political stability is to > impose rationing. Another solution would be to follow the Mexican > example and nationalize the resource and its distribution networks, as > the industry has shown itself rapaciousely avaricious on too many > occasions. Once nationalized, the problem of fair distribution can be > solved by rationing. We could encourage the sidelining of gas guzzlers > by taxing new large vehicles like SUVs. The old ones will wear out in > time and sideline themselves. > > Standing Bear > > >
