Gasoline: Part II

I wrote about gasoline prices a while ago to get a bit of feedback. I have also been paying special attention to all the media coverage on the topic because I want to write more about it.

When I listen to the news I hear the same things over and over. Americans are looking to blame somebody for the problem. Mostly people like to blame the government. I think people blame the government either because they heard someone else blame the government or because they can't think of anyone else to blame. The irony is that in this country we are the government. Additionally on the issue of gas prices we are also the solution to the problem. It's just that the solution is not easy, convenient or initially painless to solve. And in Gen-E, anything difficult, inconvenient or painful isn't likely to happen.

Let me say that I understand that politically there are issues around oil. Many of our politicians are involved in oil; big oil represents big lobbying; and oil production and processing is regulated by our government. These factors do impact normal supply and demand regulation of prices, but fundamentally basic economic priciples still apply. So, while we continue to scream about prices, we continue to consume it. Demand is high, supply is limited, therefore prices increase.

If (or when) we the people decide to actually do something, things will change. For example, speaking simplistically, if Americans could somehow consume 1/2 the gasoline we're currently consuming, there would be a significant reduction in the demand for gasoline and prices would fall (not to mention all the other benefits).

I just checked again and learned that the Toyota Prius gets a little more than twice the gas mileage as my Chrysler Cirrus. If I were to switch to a Prius, I would use 1/2 the gasoline I am currently using. Or I could go with a grease car and use no gasoline. Or a motorcycle. Or take the bus (or other mass transit) to work 50% of my work days. Or carpool with just one other person. You could too.

In general, I think we're too selfish and that we feel too entitled to actually do something, so I suspect that our congress will continue to run around falling over each other with one short-term proposal or another to appear to be politically active and I think that Americans will continue to scream and blame. I don't think that $3.00 gasoline is quite enough for most Americans to actually do something. It will be interesting to see what the price point is.

Oh, and by the way, it could be worse.

Comments

It's a dammed if you do, dammed if you don't situation.

On one hand, fossil fuels are a major source of pollution - anything that makes Americans take public transit more often is good.

On the other hand, since our economy is so dependent on cheap oil, anything that makes the price go up has repercussions for the entire economy.

I like this post very much, mainly for the point that we are the gov't here.

Wish I could persuade more people of that. It might make us more responsible.

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