Pete's post on gasoline prices obviously hit a nerve.
So here's my question:
If consumers are willing to pay higher prices for gasoline, why should we think that energy companies are going to do anything but charge those higher prices?
Much of this was prompted by Pete's post. We..and I'm definitely including myself in this category...have lives that assumed that relatively cheap energy would continue. We have gas guzzling cars, like air conditioning, drive many miles to work, haven't supported mass transit or oil altenatives, etc. We might not like today's higher prices, but didn't we set ourselves up for this? Whosever said that prices would always be low?
In other words, in what's supposed to be a market-driven economy, aren't we complaining about the market working?
Yes, I know that supply is being set by a cartel. But given the amount of refining capability and the worldwide demand, it's not clear to me that pumping more oil would make that much of a price difference in the current environment anyway.
And even if they could refine more, if prices and profits are higher elsewhere, why should we assume that the additional gasoline will be sold here?
Finally, are we starting to think of gasoline as a public good that the government should provide?
Information is power
"Whosever said that prices would always be low?"
They didn't, and anyone who was paying attention (those of us who went through the previous gas crises, lines at the pump, etc) knew this could happen, and adjusted their lives accordingly.
We spend less than $100 a month on gas for three cars (today). Years ago we moved close to work and the children's schools, and basically arranged our lives to be less energy dependent. We have a car for our older daughter, but she has always found summer jobs within biking distance of home, and, unlike her "wealthier" friends, she took the free bus to high school every day. Younger daughter also doesn't drive much; she also found jobs and opportunities that did not require driving. We bought a hybrid car a couple years ago (Prius). It wasn't rocket science; even then it was clear that the pattern of US development (sprawling suburbs that suck energy) was unsustainable.
My volunteer job (I typically volunteer 100+ hours of my time each month, close to home) introduces me to many community members each week . . . and it requires me to speak to them about local, state, and national issues. So I think I get a good feel for the sentiment out there. Yesterday I met a family in distress (as many are now) . . . a real estate salesman who told me he was spending $300 a week for gas. I hadn't thought much about what happens to realtors, but basically he said he (and many other area realtors) no longer accept new listings because they can't make money on them. He said he often spends $800 or more to market a home (a lot of time spent in the car showing prospective customers the homes). So even if he sells one (and this is very slow right now) his commission gives him very little profit. He took another job to make ends meet, but that may be short lived because it is also in a distressed sector . . . what he told me about that was scary.
This was just one story of many that I hear on an ongoing basis . . . people are hurting. We need a mass transit intiative, for starters.
I take it that you are a
I take it that you are a Democrat.You say we set ourself up for this. Not Me. I try to do as much as I can to use as little as I can. I did use solor for thirty years. It was for heating but the cost of electric is so low I took it out when I had a new roof put on. The motor went bad and it's not worth the cost to repair it. That was a year ago. I would use wind if I could. They have rules that make it to costly for a single person to afford it. If you are 60 or younger you have only lived under Democrat rules. They have been in sole power for 55 of them. So when you say us I take it that you are a Democrat. You would be right they have set me up and they sre laughing all the way to the banks in Switzerland.
Some people think so. In fact, a lot!
...are we starting to think of gasoline as a public good that the government should provide?
~~ quote ~~
Just 47% Oppose Nationalizing Oil Industry
A Rasmussen Reports national telephone survey found that 29% of voters favor nationalizing the oil industry. Just 47% are opposed and 24% are not sure.
The survey found that a plurality of Democrats (37%) believe the oil industry should be nationalized. Just 32% of voters in Barack Obama’s party disagree with that approach.
Republicans oppose nationalizing the oil industry by a 66% to 16% margin. Unaffiliated voters are opposed by a 47% to 33% margin..."
~~
See them speak. Maxine Waters has come out for it too, I believe.
I've been registered as a political independent my whole voting life. The reason is, whenever I get really upset at one party, I consider the alternative.
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