posts >> Edward > William
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Edward
As we continue to slide, or freefall, into a recession our dollar doesn’t seem buy what it once did. Food prices are on the rise across the world, and so to are fuel prices—and on top of that our wages are staying they same, which means in the end we are giving ground. All this would seem to be repudiation of deregulated industries and markets in favor of government assistance as times get tough.
But, I argue, even in the face such problems the hands-off approach is best. Now is not the time to regulate industries heavily or cap prices. No where is this harder to do than with gasoline. We are paying more in both percentage of our incomes and in sheer numbers than we ever have before for unleaded gas. Even so, government should not step in and control prices with a cap or subsidy.
Such a measure would be short-sighted and would not address basic concerns. Instead, consumer will/should make difficult lifestyle choices based on inconvenient fuel prices. Only when consumers stop purchasing gas at the same rate, or when they start making alternative choices, will the political/corporate will arise to change the way we travel.
If we put off these inevitable changes with some band aid measure they will only be more difficult to face in the future. There is never a good time to deal with the transition from gas cars to alternative fuels or from natural gas to wind energy—or from coal to nuclear. But lest we do it now, we may very well wait until it is too late. The best way to induce these changes is to disincentivize wasteful habits, high gas prices surely do that.
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William
Gas prices are outrageous and the government has a mandate to do something about it. Let me bring you back to a little episode in history aptly named the Boston Tea Party. I submit that as American’s with affinities for cheap goods of all kinds, we will likely revolt before we cut back consumption.
We demand cheap tea, and oil, (and cake), of which we will drink, deplete and eat! Though not perfect, there are a few very analogous points between tBTP (the Boston Tea Party) and UOP (unreasonable oil prices). One is that we are completely underrepresented in the pricing of oil (a side note: I realize we have contributed 10-15% of the price of gas by voting for taxes, but when the price of crude oil barrels doubles in the last 8 months, forget the 50 cents that pave roads). In the same way, Americans were not represented when the British (instead of OPEC, Canada, BP and the future market traders) were undermining good old fashioned, smuggled, colonial tea by basically subsidizing a British tea company.
Now when it comes to oil, we (the joe-shmow making it with an SUV, 2.5 kids and a little bit of debt) are indeed snobbishly and foolishly consuming at a rate that only drives up the price, unwilling to change our lifestyle to decrease it. We buy it like addicts of crack with nothing stronger then complaints about the pricing. The only reason we do such, is because we have no alternative. We are given our crack-oil and not even our escapades in Iraq have increased our ability to affect the price.
When those with a monopoly on a commodity set the price and inflate it so plainly over such a short period of time, it is exploitation of our addiction. Our government has a right to protect its consumers just like it does its farmers. And it is in its interest to do so, because it will keep its culture of consumers spending and fueling economy and industry.
So what will we do ultimately in the face of oil-tyranny? We will either invade Iran, or whomever else, until we find this oil revenue that Bush claimed would fund the cost of war, drill Alaska, or dump it all straight into the harbor of OPEC countries and Canada – Boston Tea Party style.
8 Comments
March 21, 2008 at 11:53 am
First of all, Bush never suggested oil revenues would fund the cost of war. That’s a popularly repeated mantra among the left– the “blood for oil” crowd. While there is plenty of oil in Iraq, we’ve received none of it and the country is not even at 75% capacity of producing it.
We wouldn’t get any oil from Iran, either, if the US invaded there either.
Second and finally, our dependence on foreign oil exists because of US consumer demand and popular resistance to produce our own petroleum. All of this pales in comparison to the combined increase (exponentially increasing, that is) of China and India’s demand for oil as well.
March 21, 2008 at 6:34 pm
Basically, we need to wean ourselves off fossil fuels. In doing so, we would bring a message to the corporations and government that seem to own us the area of unleaded. Paying for gas sucks, and the American people aught to be presented with affordable alternative fuels. I mean, it’s freaking 2008! There IS better technology out there. In the meantime, (not sure if that’s one word or not) I’ll try to take advantage of our amazing bus system, and monorail or maybe a Maglev. And by that I mean my bicycle.
March 23, 2008 at 9:47 pm
Amazing bus system? Are you in Fresno? Have you actually used our FAX bus system?
Our bus system is far from amazing, trust me. In Fresno, it is far underused by the people that have to go the farthest.
Californians LOVE, I repeat, LOVE their cars. And if you could convince people that public transportation was quick and versatile (at least it went where they needed to go) you might be able to put a dent in the consumption/pollution of our fine town.
I’ve taken the Fresno Area Express and it’s far from running anything like some of the larger cities. I used to work at Ashlan and 99 (there are several large business and industry parks there with perhaps 1000’s of employees)and the nearest FAX stop is a full mile away. From downtown Fresno, the FAX takes 45 minutes or longer to reach any of the stops near Ashlan & 99. Not quite an incentive to ride the bus to work. I can bicycle the eight miles from where I live downtown in about a half hour. It’s nice in the Spring or Fall, but almost murder in the hot Summer.
I should add that I love public transportation. I spent a couple summers in Eastern Europe and had to rely on their system of buses, trains and subways which were available almost everywhere and ran on very reliable schedules. But there’s a strong demand for it and no stigma for riding it. Does this make their gasoline any cheaper? Nope, it’s dollars more than ours, because we used to produce more on our own than we purchased from Arab oil companies. Have you heard of any new US refineries opening up or any new drilling? Nope. Me neither.
We need an immediate solution to aid this situation. Affordable alternate fuels only work in alternately fueled vehicles, which are available, but not very attractive or inexpensive. Monorails and Maglevs aren’t quick solutions because of the amount of time and money those two types of transportation require.
March 24, 2008 at 8:45 am
I think Tyler was speaking sarcastically when he mentioned our “Amazing” transportation system. Though you brought up a good point Steve. Our public transportation is no good. Maybe its because our city is so spread out, maybe its because we’re blessed with free parking almost everywhere, or maybe its because we enjoy our cars too much. Whatever the reason, most people do not use the bus.
I still side more on the government regulating something. They need to step in and force the US car manufacturers to only produce more fuel efficient cars, or alternative fuel-based vehicles. Then offer them at affordable prices. Maybe offer some tax incentive to the manufacturers or something. I really don’t know what the solution is. I’m just thinking out loud. All I know is, I can’t afford $4 a gallon in my Blazer which gets 13 MPG. And I also can’t afford another car just yet.
March 24, 2008 at 2:17 pm
Tim,
I cannot disagree more with your thinking the government needs to step in and do something. That is exactly what America does NOT need. Government intervention is NEVER the answer!
Nixon set price controls in the early 1970s (a death wish for a Republican) At that time, inflation was around 4%-6%. After his freezes failed, inflation had reached the double digits. At this time, the U.S. also was distancing itself from the gold standard, which has a great deal to do with our situation today.
We should have more regulations on what companies manufacture? Government intervention, I repeat, is never the answer. Where is this “Land of the Free” I hear about? Less government = free people + free-market economics.
And alternative fuel systems will never catch on, I hate to sound like such a Republican. American’s are too far invested into their automobiles to want to change now. If you think the government should do something, tell them to allow offshore drilling in Alaska and let us become independent of foreign oil. I’ll bet your Blazer would love the gas prices then, cause my car sure would.
March 25, 2008 at 1:56 pm
Hi, Tim.
Sorry I missed Tyler’s sarcasm. I’m a little slow at times.
I would prefer to lean away from government regulation as too simple of solution for the problem. The government already regulates the auto industry in so many ways– safety, environmental impact, etc. You mentioned tax incentives– how about tax rebate for those who DON’T buy certain gas-guzzling rigs? Don’t just award the industry the incentive.
Real regulation could come from the consumer who chooses to buy an efficient vehicle or buy the more hipper and popular SUV. At this point, much of America has succumbed to the SUV sales pitch. They buy them because the advertisements show them as safer, roomier, more fun, etc. And that’s what matters to lots of folks concerned about image.
Now that the economy is in the tank (sorry, bad pun) and we’re all struggling to cough up the four bucks for a gallon of gas, the SUV party is over. The only people who will buy them will be the people who can afford them and their gas mileage– not good news for the middle class.
I’m a firm believer that we as consumers and citizens have the responsibility of being wise stewards of what’s available. We can convince our friends and neighbors to join us, hopefully, and make an impact.
Don’t wait for the legislature to make this happen at cost to you… this is grassroots stuff.
March 25, 2008 at 2:35 pm
Good points Steve. You know, right after I made my initial comment about offering incentives to the industry, I had the idea of offering different incentives for the consumer as well. Your rebate idea would do some good!
And I know one of the main problems is the economy. I just wish there were something that I could do to help change the price of fuel. I suppose one thing I could do would be to drive less. It wouldn’t make a big difference for the rest of our state or the nation, but I guess it would still help with my problem!
I’m all for personal responsibility but I still feel like more can and should be done to help those who simply can’t afford these insane gas prices with the way our economy is now. Sure, most people who can’t afford it probably made a poor financial decision in the past that caused them to not be able to afford these “luxuries” like gasoline now… but I’m sure others were born into this problem.
Sorry, these are kind of just random thoughts.
Until then, looks like I know what I’ll be spending my stimulus check on…
March 26, 2008 at 6:07 pm
what happened to my comments?