by ralfy » Thu 29 Jan 2015, 22:14:22
$this->bbcode_second_pass_quote('Shaved Monkey', 'A')s I am a white middle class 1st worlder I will probably have a car after the 3rd world cant afford to pay for petrol to fill up theres.
I imagine I will probably have 1 more possibly 2 more cars.
They will use less fuel than the one I have now
I only spend $300(before price drop) worth of fuel a year and $1200 on insurance and registration,so I have a fair way to go before I cant afford to drive even if fuel prices go up by factors of of 5 or 10X.(which will knock out plenty of demand.
The electric bikes will take up a lot of slack though.
But I imagine motels may be pretty cheap/desperate if fuel prices go through the roof.
This has actually been the case for decades. The catch is that the manufacture, transport, use, and maintenance of passenger vehicles require extensive infrastructure, use of FFs, JIT systems, and significant levels of debt.
In addition, many of the components needed for these processes and systems are manufactured in developing countries, where middle classes are growing. This explains why middle classes in rich countries are experiencing greater difficulties concerning wealth and employment while counterparts in the rest of the world are consuming more, as seen in growing sales for cars, appliances, cement, and others.
Another irony is that the income and returns of investment earned by the current global middle class (around 15 pct of the world's population) may ultimately be dependent on profits earned from more sales of goods and services to a growing consumer market, and that includes the same middle classes in developing countries.
Thus, in order to have his car, house, appliances, and many other middle class conveniences, the member of the middle class will have to make sure that more of these conveniences are sold to a growing global middle class.