by pup55 » Sat 16 Oct 2004, 10:57:18
Let me tell you about the '70's.
Just about this time in 1973, the "arab oil boycott" started. We did not know much about the arabs at the time.
The first thing everybody did was go out and fill up their gas tanks. This made the problem worse, of course.
The shortages started to hit the consumer level about a month later. There were, indeed, gas lines, and odd-even rationingin the big cities, but out in the countryside, you could usually get gas. What you did do, though, was make sure you never got below half a tank without filling up. There were reports of violence in the gas lines in California and Chicago but most everybody cooperated.
The first to go were the independent gas stations. In those days, there were little businessmen that bought gas on the open market, and usually undersold the gas giants. When the shortages hit, these guys could not "hedge" and also, they could not get gas, so either they had to charge more for their gas, or else they would not be able to get gas, so they just shut the doors. The fossils of these gas stations are still found in the older parts of most cities.
Fuel oil also got in short supply, and the response of the college I was going to at the time was to only run the heat in the dorms 4 hours per day, in theevenenings. We all wore more clothes. There were a lot of problems with people running out of fuel oil in the northeast. People were converting back to coal heat, and also, firewood was in short supply for awhile.
The response to all of this by the US auto companies was the invention and promotion of the Pinto and the Vega, small, junky cars with small motors that would occasionally blow up if you hit them just right in a car accident. These were the two biggest abominations in US auto history, Toyota took advantage of this ineptitude and really started to gain a foothold in the US auto business, and it has never been the same since.
In those days, there was no CNN and no Fox, so no one telling us 24 hours a day we had a problem, so most of the time we forgot about it and went about our business. Beer was 35 cents a glass. Gas went from about 29 cents to 55 cents a gallon between October and June. It was pretty common for young ladies (this is your mom I am talking about) to go around with little or no underwear, and AIDS had not been invented yet. Reefer was used openly on most campuses. There were some guys coming back from Nam with bullet holes in them. They were never quite right in the head, we thought.
One thing that really cheesed us off is that we had a couple of Kuwaitis going to school with us. They were kind of free spirits, so we did not really bug them nor them us. Every six months, they got a new top of the line Oldsmobile and $10,000 in cash for "spending". They had no idea how to drive, though, so that was the life span for the cars. The Kuwaitis survived, though. I wonder what happened to them?
In about December of '73, Tricky Dick Nixon, who we all hated anyway, cameout with the 55 mph nationwide speed limit. This was really annoying because it really made interstate travel boring, but had the immediate effect of increasing the gas supply about 10% and also, there was an immediate reduction in traffic fatalities. This lasted all the way up until the mid-80's.
By summer, someone started pumping the oil again, and things were more or less back to normal for about the next 3-4 years, except, in those days, anyone graduating with a geology degree would get a instant high-paying job in the oil patch. Gas was more expensive but you could get it. There was an unusually bad winter in about '76 in the Northeast and there were spot shortages of fuel oil again, but by then, a lot of people had turned to gas and it was not so bad.
In 1978-1979 a lot of the iranians in the country were doing protests against the US support of the Shah of Iran and for the Ayatollah Khomeni. We thought this was comical at the time, becasue who were these Iranians and so what anyway? Some of them even went so far as to chain themselves outside the factory where I was working, to get local TV converage. So not long after that, the iranian revolution happened, and the gas price went from the mid-30s per gallon to about 80 cents within about two months. This, too, was painful, and there were shortages, but most were taken care of by the even-odd rationing. and I do not remember this being quite so bad supply wise. A few more people had tired to install pot bellied stoves in their houses.
Politically, though, TSHTF for poor old Jimmy Carter. There was a big buildup in inflation from the previous oil problems, plus a lot of layoffs due to the economy slowing down, plus this energy problem at the same time, plus by this time interest rates were starting to go up, so the housing market went to hell.
He knew all along that the root cause of all of this was the way we were trying to use energy, and tried to show leadership by telling us to conserve, even to the extent of shutting off the lights on the whitehouse christmas tree in '78 or '79 (another old timer will have to tell us which). Of course, he was right, but nobody wanted to hear it.
That, children, is the story of the 70's.