by The_Toecutter » Wed 06 Jul 2005, 18:28:06
$this->bbcode_second_pass_quote('', 'A')t a large party on the 4th, I asked people what they would/will do as the price of gas rose. Most said they would cut out cable TV, their extra phone lines, magazine subscription, golf less, etc. Not one said they would drive less. When asked why, it was mostly because they couldn't. There has been no demand destruction after a 58% rise. I wonder what price it will take? As long as American can go to the refi-ATM, they will pay whatever the price is. Some have no choice.
Cutting cable TV, extra phone lines, and all that crap won't do shit to ease the problem. Gasoline is one of the largest expenses people pay, often accounting for 8%-10% of their incomes today. $10 a gallon with no pay increases? That just won't fly too well.
No demand destruction has occured because that would bring less money to the oil companies and car companies, and thus less money to this economy that is built around limitless growth and heavily reliant on these two areas. This is very dire, but those at the top don't care: they're going to rake in tons of money from all the poor saps too stupid to understand what's going on! The capitalist system as we know it today.
We need better public transit, extensive bike-only roads, and automobiles that don't use gasoline. Despite the potential for this to be done, still no dice. We had a lot of those things earlier in our history, but the auto industry tore down all the trolley lines after buying them all up forcing people to be reliant on cars, the government hands the auto and oil industry big subsidies, the government assists in killing public transit infrastructure to increase consumption of goods to spur growth, and we even have the oilies in the white house starting wars on a whim, with lavish bonuses paid to defense contractors courtesy of mister overworked taxpayer.
If food gets too expensive from peak oil(Which it very well could)? Water? Electricity? We're in for some big trouble. But, the incompetent government bureacrats will save us and the crooked industry will roll out the solutions at the last minute... *chuckle*
Once people realize no one is coming to save them, it's all down hill. And people are going to be especially pissed once they learn of the world they were robbed of.
Crossing my fingers a doomer scenario doesn't happen...

The unnecessary felling of a tree, perhaps the old growth of centuries, seems to me a crime little short of murder. ~Thomas Jefferson