by jlw61 » Tue 11 Sep 2007, 15:21:41
Your article, IMHO, would only be valid in a scenario of rapid oil prices which are caused by physical destruction of large oil fields/pipelines in the large oil producing countries. I think, with no particular economic background, that the US could survive (with some pain) a price increase as high as 15% a year until oil tops $200 a barrel, after that, it's a complete guessing game on my part.
So let's assume that suddenly oil is over $200 a barrel. I believe you will find that the general population would recoil quite badly towards a sudden loss of cheap oil.
So let's ask some questions in order to figure things out.
Would credit card companies react quickly to shut the system down so that they would not be the ones holding the bag after a panic buying spree? After all, they are there to make money, not provide a public service.
Would there be nobody to work or would there be a radical change in who got work? Would a employer shut their door because their $8/hr stocker and $15/hr manager could not drive 5 miles to work or would they hire the newly unemployeed IT manager within walking distance to stock shelves and manage their store (two employees in one!) for $10/hr?
A very large percentage of home-owners would be in default in 3-6 months. Would they be put out on the street causing milliions of homes to sit vacant or would deals be made to prevent massive migrating hordes and loss of tax revenues?
Few people have more than a month of food on hand and most crops take 60 to 120 days to grow in the back yard. Would this be the perfect recipe for emergency laws, work camps, and other really nice government solutions? Or would people pull together, build cheap green houses and figure things out while the first crop is in the ground?
There are 60 million gun owners. Would the government decide to try to disarm them in a foolish attempt to "maintain order"? How many would willing give up their guns? Would the military be called in to disarm gun owners? How many law enforcement would be willing to risk near certain wounding or possible death by a desperate population who fear the loss of their gun for protection in universally uncertain times? New Orleans residents submitted to gun confiscation because they knew the rest of the world was still there and in one piece.
The population would need to learn about mass transit and car pooling in order to keep anything resembling a job for anything longer than a few weeks. Would the cities finally fix/upgrade their mass transit systems quickly and, more importantly, would they be able to even keep them running?
Would governement respond in positive ways striking down laws designed to protect a cheap-oil and entitled society in favor of allowing people to figure out what's the best solution. For instance, would it become legal to raise animals in the city? Would it be possible to grow corn in the local park? Would the law allow you to kill someone trying to steal your crops or livestock? Whould you be allowed to provide bus service with a pickup truck and a 50 seat trailer at a price below what the city could provide?
I see two scenarios most likely playing out, and since I'm an optimist, I see the first one as most likely. There really is not anything in between since people either band together or they kill each other.
1) TANSTAAFL - There would be spot rioting and isolated problems as people realize a new world order is upon them called "Reality". However, most people would adjust, make do, move on, be productive, and protect the neighborhood. If everyone is in the same leaky boat, the wise person passes out pails.
2) Road warrior - People lose their minds and the SHTF. Go into hiding and pray you have enough to last you through the next harvest.
In both of these cases I see the government playing a key role in which path we take and quite possibly different parts of the country taking one route or the other. If govenment (local or federal) panics and tries the heavy handed approach, I see the Road Warrior scenario as most likely.
If government backs off, gives a little cover to the people, and runs interference with the banks and corporations, number 1 is more likely. A local government determined to do what's right could override a federal government unless the army moves in. To accomplish this, federal entitlements and "free" local services would need to dissapear overnight and the various governments would have to revert back to a protector of rights and liberty, nothing else. So, while I'm an optimist, I'm also a realist. My suggestion is that you make sure you have plenty of ammo and freeze dried food because I am suspicious about any government's ability to swallow its pride and do what's right for the people.
JW