The American Dream and The Price of Gas
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Gas is Up. Real Estate is Down
It’s June of 2008 and the housing market is still tanking. ARMS are resetting like little time bombs. Foreclosures are up. Food-prices are up. Un-employment is up. Credit card debt and medical insurance are skyrocketing. Retail sales and air travel are down. Ditto, new car sales, restaurant receipts and movie attendance. Nobody is buying anything because the price of a gallon of gas has finally reached the dreaded $4.00 mark, and doesn’t seem to be going down anytime soon. Just commuting to work and back costs double what it did only a year ago. Salaries are definitely not keeping pace. People are hurting. Even food pantries and soup kitchens are having a hard time With gas at $4.00 a gallon, we have reached a major tipping point. Whether the cause is peak oil, Wall Street manipulation, growing demand from the developing world or all of the above doesn’t matter in terms of effect on daily life here in the land of the free and the home of the brave. …and this is only the beginning.
Here's What I Know
Life as we have known it in credit-card carrying, SUV-driving, MacDonald-munching America is about to change in a big way. Here’s what I’ve already noticed :
1. There are fewer trucks and SUV’s on the road and while rush hour week-day traffic is still the same, there is less highway traffic on week-ends.
2. Hybrids and small cars are multiplying like rabbits
3. There is a sale sign in almost every store in the mall and my snail and email are full of special offers from retailers.
4. Prices are up in restaurants around town and there are fewer patrons.
5. The price of a bunch of locally grown asparagus at a farm stand is about the same as the price of a bunch trucked in from California at my local supermarket . Local produce used to be more expensive--not any more!
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My Predictions for What’s Coming Next.
People will move back to cities and older suburbs near public transportation. They will also begin opting for smaller dwellings in walkable neighborhoods. The spanking new,4000 square foot meadow mansion with energy- guzzling, cathedral ceilings, Palladian windows and a three car garage is not looking so good these days, even for those with lots of cash and squeaky clean credit. The downside of having to get in your car and drive two miles to buy a quart of milk instead of walking to the corner store, is becoming increasingly obvious.
The suburban exodus that started after WWII is about to go into sharp reverse. The urban ghettos created in the wake of that exodus are about to be reclaimed by the middle class while the urban poor, who always get stuck with what nobody else wants, may well end up crammed into crumbling,sub-divided, Great Rooms in a cul-de-sac. All those empty, newly built unsold suburban homes are ripe for squatters and slumlords-- and then whoops—there goes the neighborhood.
More people will work from home. This trend has been in place for awhile and will accelerate rapidly as commutation costs become more and more prohibative.
The internet will serve as a virtual office, at least part of the time. There will be more teleconferencing and less business travel. Also, e-commerce is about to enjoy a big boost because you don’t have to use any gas to get there. Right now people tend to research products online and go bricks and mortar to buy. I predict that buying everything from major appliances to groceries online will soon be the rule rather than the exception.
You won’t be able to give away an SUV. Prices on used SUV’s and trucks are already way down. Nobody wants them, not even car dealers. Prices of Hybrids and fuel efficient economy cars are already going up. It’s the old law of supply and demand. Expect this trend to continue.
Expect the trucking industry to shrink and railroads to have a renaissance in freight hauling. It’s much cheaper and more fuel efficient to haul goods across the continent by rail than by truck. I, for one would be happy to see a renaissance in passenger traffic on Amtrak as well. You can carry 200 people between Boston and Chicago on a train for a fraction of the cost of moving them in a jet plane. I have never understood why the government was willing to shore up the airlines but not the national rail system. In any case, expect substantial increases in airline ticket prices and substantial decreases in service and reliability. We’re already well into this but watch it accelerate as airlines cut costs to save fuel…. And don’t buy any airline stock.
I have to admit that I don’t have a crystal ball, but you don’t have to be a genius to figure all this out. Life is going to be very different from here on in and it is happening very quickly. Buckle up because we are coming in for a crash landing. But you know what? When I look at the list I’ve compiled here, I can’t help but feel a bit hopeful. Driving smaller cars, relying on the internet, living less wasteful lives and having to cooperate with our fellow countrymen in new ways can’t be all bad. As a nation we’ve been on a fifty year binge of “more more more” and we’ve spread our materialism all over the world. Now that it is coming to an end, we may just find out that money does not buy happiness and that being the biggest dog in the junkyard leads to fights with all the other dogs, not peace and serenity. $4.00 a gallon gas is going to cause a lot of pain and a lot of change, but we might just end up with a new and better American Dream; one that won’t turn into a nightmare.
T.Boone Pickens on Peak Oil
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Comments
Nice hub, Robie!
Eric, right now American Airlines is charging $100 only for the FIRST checked bag, but is talking about charging that amount for EVERY checked bag. No doubt other airlines will follow shortly, which COULD be the death knoll for non-business air travel.
btw, the U.S. became the "biggest dog in the junkyard" in the first place because, at the end of WW2, it was the only country that still had working factories. Those of every other industrialized nation had been leveled by the Germans or Allied forces during the war.
Global economics is simple: No Money, No Buyee. When wages remain flat in the name of the hallowed bottom line while everything else is going up, up, up, people CAN'T buy non-necessities. Odd that those of us who didn't graduate from Harvard Business School can figure that out, but those that did, can't.
Gret hub as usual robie. I believe this current world recession is a *good* thing. People could not continue to borrow as they have done for the past 20 years or so. Our world and environment can not continue to sustain such wealth, and this is the economy's way of reminding us of that fact.
I would like to see the railways carry a lot more freight than at present and welcome your prediction! Finally, I can thoroughly recommend a Toyota Prius for anybody considering a hybrid. We're on our second one, and regularly get over 60mpg on a long journey, and about 55-58mpg on urban driving.
This is a fabulous hub robie2! I love your hubs. Have your heard about the contest at Associated Content for this kind of subject? It starts today and ends at midnight--you pick any topic you are passionate about and write about what it will be like this time in 2009. First prize is $5000. You could win, you're the bomb! I also saw an author on Stephen Colbert's show named James Kunstler-- http://www.kunstler.com/ who says the same thing about suburbia and lots more. We put in our 'victory garden' this past weekend--now I'm on a how-to-stay-warm this winter quest. God knows what heating oil will cost--this past winter we spent over $2000 heating our 1000 sq ft home, and we kept the thermostat below 65. Thanks for a thought-provoking encapsulated verision of all the fun ahead!
Excellent insight into current events in the good ol' USA. I agree with your opinions and in spite of what has occurred in my current line of work, I'm all for downsizing. Nice work.
Hi Eric. Thanks for the Aussie POV. I agree that this is not a cycle but a real paradigm shift and I'm gonna check out the newsletter--thanks. Hi Jamagenee and Peter. Good to see you both and pg thanks for the link and I'm gonna check out that contest.($5000--wow)And Rob,thanks for your comment too. People who agree with my opinions have a special place in my heart:-)
I totally agree that we have been on a materialistic binge for way too long. And if anything can get us change our priorities, then it is a good thing.
I think you overlooked the weakness of the dollar as one of the major problems of the economic turmoil.
And taken as a percentage of our overall expenditures, the price of gas is not that much. But it is the most visible. Plastics are petroleum based, so as the price of oil goes, so does the price of everything made with plastics.
Very thoughtful HUB. And I do hope that your conclusion is where we are headed. We have been squandering our natural resources for far too long. The rate we are wasting them is not sustainable.
So if $4/gal. gas is what it takes to make us wake up, then that is a bargin.
Hi John--right you are about the weakness of the dollar. Good point. I love your last line "...if $4/gal gas is whart it takes to make us wake up, then that is a bargain" Well said!!!!!
Hi John, you sure said it all. I agree with you in everything you mentioned. Just yesterday an Author was on talking about his new book "Free Lunch" and I was shocked about the way our government takes our money to give it to the rich. Even our cell phone bills are padded with so many taxes that we should not be paying for. America needs to WAKE UP before it's too late. People need to stop buying Hummers (gas eaters), bigger homes, more gold jewelry, large flat screen TV's and getting their toes manicured. American's spend over $2.00 for a cup of coffee outside their home. That is totally a money waster. Wake Up America. John, you deserve many KUDOS for writing this hub. God bless you, Laurie
Hi Laurie-- and thanks for your comment but I'm alittle confused LOL I'm not John, however like you, I agreed with his very trenchent comment on my hub. Thanks for stopping by-)
My thumb is up!
I started reading your hub after my second cup of coffee this morning, and got kind of bummed out.
I live in the suburbs. I drive an SUV. (Thank goodness, I don't have a McMansion.) I got that far in your hub and then decided to make another pot of coffee before continuing to read. As I was putting the coffee pot together, I thought about coffee prices, and remembered something my mother said years ago, when coffee prices hit the roof for the first time. That may have been around 1972 or 1973. The official reason was because there was a drought in South America. Coffee prices doubled within weeks. Watching this at the time, my mother said, well here's something that will never go backwards...coffee prices are up to stay. She believed in a conspiracy theory, and I'm not sure she was wrong, but the truth of it is that coffee prices never went back the other way.
We will never go back the other way. America only now is catching up with the true cost of resources, to the degree that everyone feels it. This cost is what the rest of the world has been experiencing for decades. We had a cushy life.
So, drinking a cup of coffee from the second pot, I returned to your hub.
And I found hope in the last paragraph. I sure do miss those trains.
This is a new frontier. GM announced today that they are closing 4 plants that manufacture their gas guzzlers. Meanwhile, Toyota is experiencing record sales for their hybrids, as they should, since they've had a ten-year plan in place, renewed every year, for decades. Short-sightedness on the part of us Americans. How will we respond going forward?
Great hub, Robie.
Wow, Robie! You really have it all covered so well. I agree with your conclusion. All of this may not be such a bad thing. Ultimately, the environment will be better off without all the suv's and other excess. Change is clearly neccessary in this country, from the massive amount of fast food consumed (deadly) to the materialistic and competitive attitudes of middle class Americans. This was very interesting reading. :)
Tightening our belt and living smarter is definitely a process and not an event. Whew...we've got a long uphill climb. It is a sobering thought and a complicated journey ahead. America is up for it. I, too, have hope. The Great Depression changed this country, and if we have to get back to some basics...it's a good thing.
Sobering, but good.
A well written hub, Robie2 =)
Greatly written hub. Lots of good stuff contained here with good information.
Not to say that your predictions are wrong, but didn't we go through all of this back in the early 70's? Jimmy Carter was president and they started making cars with smaller engines to get better mileage then suddenly there was no shortage of gasoline.
I believe the recession will either keep going, or it will do as it did back then. That's my personal opinion now. Thumbs up for your hub.
Hi ST, AmyJane,Marisue and Sir Dent and thanks for the great comments. Thanks for the thumbs up,Sally. I can smell that coffee brewing:-) I agree,Amyjane--change is in the air and Marisue I agree also that not just America, but the world, has a complicated journey ahead. I believe this is part of a real paradigm shift and not a short term thing, which is what makes this different from the Carter era, Sir Dent. I remember when Jimmy Carter lowered the national speed limit to 55MPH and told ius to turn down the thermostat and carpool. Cars did become smaller and more fuel efficient then and Carter even had solar panels installed in the White House. The first thing Reagan did when he took office was to tear them out. We went back to our old ways and the day of reckoning was postponed==but now it is here and I don't think there will be another postponement. Thank you all so much for reading and commenting. I enjoy the comments especially soooooooo much:-)
Nice post, I think More people will work from home which could be a good for suburban development.
Hmmmm true enough--or rural living--but I think most people will be commuting and working more from home--a combo--but you never can tell--all I know is a big shift is underway. I can feel it, can' you? Thanks for making that very interesting point.
Excellent piece, Robie2! We really are facing a challenging future and I believe our citizens are up to making the changes needed; but I believe we-the-people are far out ahead of our politicians, big corporations, big oil, and pharmaceuticals and may have to drag them, kicking and screaming, into the reality of our dire future if they don't get serious about making the changes needed.
Great hub, Robie! I agree with pretty much everything that you have here other than wanting to see the freight going to rail. Kinda hard for me to wish away our income on that one. Hubby has been a trucker most his life and does pretty well, I think. The price of fuel has already begun to shut down many, many owner/operators in the trucking industry. Fortunately, he is a company driver and at least stands a chance at the moment of keeping his job. What about all of the unemployment that will result from all the truckers losing their jobs to the railroads? With all of the factories that have already left the US for other lands, where will these families get their income? I realize that their is positive and negative in all situations and pretty much all we can do is take it one day at a time and deal with whatever circumstances are put before us. Great hub!
Bonnie
Hello KS. I believe you are absolutely right!
Bonnie--you bring up a good point. The price of gas is already changing the trucking industry and that will continue. it's a matter of economics and railroads may or may not be the solution( my crystal ball gets cloudy sometimesLOL). I'm keepin my fingers crossed for you and your family. I don't envision big trucking companies going out of business but I do think they will change--how I don't know. I can only hope that new jobs will be created by the new conditions.
Loved this Hub - reality is tough to face, but you've done a nice job setting out the facts and your reasons for the future we may be facing.
What a great Hub, and you're right. A big problem with the price of gas is that our currency value is dropping, mostly because our government spends far and away more than it raises via taxes. The difference ends up being reconciled via our exchange rate, and the dollar has been dropping against every other major currency. Sorry, but the problem is at the foot of Bush and the Republican-led legislatures before 2006 - they spent, spent, and spent, (and not just on the war!) and then cut taxes to help out the rich. Extremely irresponsible governance.
But I agree with you robie2 that the result is an important paradigm shift. People will have to think differently about how they spend money, because things that used to be inexpensive have become much more expensive recently.
Very thoughtful content! I agree money doesn't buy happiness and a country that is being consumed by materialism can only benefit from a good crash landing once in a while.
Hi Steph, Livelonger, and Stevemark and thanks for your comments. Reality is tough to face, but not facing it will be even tougher and Livelonger, I agree about the imprudent fiscal policy--whenever this administration needed money, they just went down to the basement of the Treasury and printed some more--great way to devalue the currency eh? And Stevemark I really do think that if we hang on the crash landing will be a benefit in the long run--sort of paying off your credit cards--hurts in the short run but is great when its done.
Hi Steph, Livelonger, and Stevemark and thanks for your comments. Reality is tough to face, but not facing it will be even tougher and Livelonger, I agree about the imprudent fiscal policy--whenever this administration needed money, they just went down to the basement of the Treasury and printed some more--great way to devalue the currency eh? And Stevemark I really do think that if we hang on the crash landing will be a benefit in the long run--sort of paying off your credit cards--hurts in the short run but is great when its done.
I have noticed the same Robie, and also in gas stations, they hardly fill the tank, just a little and go. This oil price increase has affected the whole world and it all stems from Iraq war in my opinion.
Hi cgull--good to see you. Seems to me that there is not just one cause--the war certainly plays a part--but I think it's more complicated than that--anywya, whatever the cause, we are stuck with high gas and oil prices and the effects of these on everyday life.
Robie,
I really think that your predictions are spot on... Small cars and hybrids are hitting the road in droves. My husband commutes to work and each day he notices less and less traffic. Gas prices have surely been the cause of this, or perhaps like you said, some people just are doing business out of their home. We do need to be aware of the things happening around us don't you think?
Great hub! My youngest, living in Boston, lives a very 'green' life...she doesn't drive, she lives just a few blocks from her school and her job and her grocery store. She takes mass transit, which in Boston is great!, for other errands. Quite an efficient lifestyle. I also read an article a few weeks ago, can't remember now where, that said Manhattanites had the most ecological, small footprint kind of thing, of all the folks in the USA.....Why? They take mass transit, they shop at nearby stores. (you have to get all the way to New Jersey for one of those big Costco type stores with the monstrous parking lots). The USA and its people are in for a "crash landing" as you say...some of us already there!...but, also as you say, maybe we can look at this situation a bit hopefully as we're repairing the crash's damages.
Hi doghouse and desert:-) and thanks for your comments. doghouse, I'm interested to hear that the same shift to less driving and more small cars is happening on the west coast as well as the east and desert, I have heard the same thing about living in Manhattan--lw carbon footprint but lots of stress,pollution, and noise LOL. Whatever--big change is in the air and I really do have a feeling that once all the eggs are broken, the resulting omelet will be very tasty. Thanks for stopping by. Good to see you.
And there's me driving a gas-guzzling Grand Cherokee Jeep most of the way across Europe! Just dropped by to say hello. Gas here in the UK is $10 a gallon! Let's ALL get back on the rails. The world has been very nearly insane for a generation now and to me all the things you point out give me hope. I'll certainly be keeping a track on your hubs in future.
Just be glad that jeep wasn't yours,CJ. It's losing value by the minute LOL. Thanks for dropping by and I agree about the insanity. I've already got your hubs on my radar as you are a spectacularly fine writer--so happy I discovered you here in this ever expanding hubland.
Dear Robie, you are a very wise and intelligent lady! This hub is a wonderful description of our current economic reality. I cannot get used to little cars at all, because they are so claustrophobic. I don't want to change a big SUV for a little car, ever. I like German TDi (diesel) engines, because they use much less fuel. I am also convinced that the new innovative technological solutions as a result of a great American Dream are going to transform the economy from patrol to other renewable energy sources under much wiser new leadership in the White House, soon.
Hi Solarshingles--I agree that the world is moving very quickly towards new innovative technologies and away from fossil fuel--a good thing both environmentally and politically I think.....and God only knows any new President will be better than what we have now:-) Enjoy your SUV. You might as well because you are not going to be able to sell it soon....thanks for your insightful comment.
Boy, you have described us eerily robie. Amazing foresight no doubt. Only a few months ago none of us would have bought into what you have written here, but things have changed dramatically and these current circumstances literally are affecting every single American. What a way to pull this Country together, eh?
I am stuck with a gas guzzling SUV right now that cost me $100 to fill up just the other day! This is truly the reality that many of us spoiled Americans are facing right now - with no relief coming any time soon.
I think "thank you" for this Hub. LOL
tDMg
LdsNana-AskMormon
Robie,
My husband went out car shopping today... hybrids are in demand, and you can't give away SUV's. The price of gas has really been a factor for a lot of change even on the west coast! It is just too bad that we do not have a good public transportation system out here!
Robie, I would just like to add one comment, which is very challenging, here. If you think it is not appropriate, just delete it, please.
Last weekend there was a terrible car accident in UK, when a SUV Range Rover crashed the Toyota Prius of one young family. A guilty guy in SUV stay totally intact, while Toyote got totally smashed. Young lives had gone. I like the idea of a small cars, but in reality they are deadly dangerous to use, because we cannot expect fast changes in our bad driving habits and sad statistics. We really don't get new quality of driving in a little tinny cars. I think, the right direction considering cars would have been much, much lower fuel consumption, or even better use of hydrogen produced by renewable energy sources. American Innovative Dream could achieve that.
LDSNana, Doghouse and Solar--thanks for such wonderful,meaty comments. Well, Nana, necessity is the mother of invention and we Americans are good at inventon so I have hope for us. Doghouse thanks for the West Coast report and Solarshingles thanks for bringing up the mortality point--deny it??Never. It is sad but true that drivers of small cars are more aat risk in accidents--but then if an SUV meets an eithteen-wheeler, the SUV is gonna be toast and I agree with you about the developement of hydrogen fueled and electric cars. I understand GM, Ford, and Toyota are working on it. I too think that is the future in the long run. Thanks all of yu for your thoughtful comments.
Robie: Since I have been living in a rural town in Oregon which as you know is a drastic change from living in expensive NY, in a chic apt, money is not an issue with me anymore- thank God. Phil (my mate)could buy a bigger house, a fancier car, and eat out all the time if we wanted to, but by having a simplified life, which means a simple home,car and spending less, money works well with us- I am learning that less does not necessarily mean I am depriving myself; it means I don't need toys or to spend a lot in order to feel satisfied, as I did during my 30's and 40's.
Hi Violet Sun-- you make a great point--I like the sound of your lifestyle and agree with your ethic. It's about enjoying what you have and not killing yourself to have more. Thanks for such a thought provoking comment. it's about a lot more than the price of gas LOL
robie2- Very nice hub. All of us need to start spreading the word of simpler, greener lives! I paid $4.25 yesterday per gallon. I know it will be $5.00 here shortly!
Hi Lilymag. I thihnk you are right.$5.00 is around the corner. Thanks for reading and commenting.
Great hub Robie. I think you are spot on. I am living in the house I grew up in, the grocery store is right down the street, and about everything I need is within walking distance. I am learning to grow my own vegetables, and learning to work with what I have, including actively pursuing online income. The only thing I will probably keep is my Ford Explorer, it's not a big SUV but I use it for alot of things- hauling-dogs-kids-bikes-business-
I'm glad that I never felt the need to live in a big house or wear expensive clothes, because it's easier for me to adapt- but those that are not very self reliant have a new thing coming- and will need to drastically adapt to a new way of living...and consuming.
Big thumbs up Robie!
Thanks, you're so right, similar evolution here in France. I'm so lucky living on an organic farm and coaching entrepreneurs to go green.
You know the rising oilprices are in a way an opportunity, it will make change possible. Maybe we find out in time enough solutions to reduce the effect of global warming.
Shift to green living people it's not that hard to do and you will all save a lot of money.
Thanks again for the hub, Robie.
Warmly Ronny
Hi Dorsi
thanks for adding a comment here. In these days of high oil and gas I think more and more folks are going to be lowering their carbon footprints. Gas at $4.00 now--f by the end of the summer and then its on to heating oil. How wonderful to live in the same house you grew up in--and with a grocery store nearby:-)
Coach Roddney I definitely agree that the silver llining in this situation is the opportunity for change. I cliked on the liink in your name and checked out your blog too--very nice:-)
Awesome Robie! I just got fuel in my state....$4.15 a gallon......UGH! I'm afaraid if I tighten the belt on my anorexic budget anymore.....I will certainly strangle. I'm sure many Americans feel the same way.
Hi Lacy--nice to see you, it's been awhile. I'm waiting for the next installment on the speedo wars LOL In the meantime, I know what you mean. I think twice before I get behind the wheel these days and they say it will be $5.00 by the end of the summer. Won't heating the house be fun this winter? We live in interesting times.
the "american" way of life, and its extension in western europe,commonwealth countries, japan, etc, is completely unsustainable. The oil prices is just an inmediate consequence of this "ostridge menthality", hiding the head in the hole. Now Russia´s oligarchy booms, and China´s and India´s elites want to upgrade their 3rd world profiles, they wanna be "premium" members and it´s clear that the cake is not big enough for all.
Not only this short term, everyday consequences menace the ultracapitalism.
to name just a few:
Invasion of Iraq and Afghanistan, provoking more political tensions in the region. Seems like all you americans care about is the money you spend to drive your cadillacs to burger king, but what you don´t seem to realize is the blow of hatred that your system provokes in the oppressed countries of the so called "third world".
-Climatic change evidences are day in day out bigger. Last example, melting of a glaciar in Argentina´s patagonian region,melting of glaciar in the middle of the Austral Winter!.
-Food crisis in Africa, the G8 just met this week, and after a 6course lunch and before the 8course dinner ,they decided to step back from last years promises and cut the help for Africa. At least the G8 leaders had the decency not to invite the African leaders to the dinner, a photo shooting and a hand shake is more than enough, isn´t it waht it counts? i wrote a little hub about this.
But anyway you still have Alaska,and Iraq full of oil, so let´s drill it baby, yeeeeeehaaaa .
I hear a lot Obama´s magic word of change change change, i wonder what that means. I recall president Bush´s first campaign also with this change change change mantra, That was a bad change
The revolution might be an utopia, but this system is collapsing and imploding fastly,maybe a revolution is not required, wonder what comes next and if we´ll see it.
thanks for the hub.
Hi Joe--and thanks for the long and thoughtful comment. It may surprise you that I agree with most of your points, However,every crisis is also an opportunity for change and we are at a moment of great change, not only here in America,but in many other places as well.
The big boys in the G8 are not doing a very good job. The system is certainly broken, and the current oil crisis is nothing compared to the food and water shortages worldwide that may wall lie ahead. I hope that what comes next is a real paradigm shift in the way we treat the world and each other. I'm not big on revolutions.though. They are usually just a reshuffling of the deck of power. Off with the old, on with the new, and lots of people get hurt in the process. Not very productive in the long run:-)
very good hub loved it work from home thats what i do
I remember the news on this from last summer - and in the UK, we were wondering what you were all making such a fuss about. At the time, petrol in the UK was more like $2 a litre......
Ahhh but here people routinely must drive 50 miles or more each way to and from work and there is no public transportation available in most of the country so it realy was a big hardship. Adding $100 or more a week to the transportation budget drove many people over the edge. I know you pay much more than we do for gas/petrol but as an Icelandic friend of mine visiting the USA once said " In Iceland gas is three times as expensive, but in America you have to drive three times as far to get anywhere."
Yes, and AMerican cars have a shocking mpg
Yes they do-- but one hopes that with the new regs that will change for the better soon.
That would be good for lots of reasons.
Sorry, I missed this one also,
GM lost 30 billion dollars last quarter.
The pirce of oil is down and at least in Southern California the price of gas is creeping up. From under a $1.90 just a few weeks ago to $2.25 a gallon today for regular.
I heard from a friend that today in Oklahoma City the price for gas was $1.50.
It only took an economic meltdown to get a change the auto industry. The meltdown caught them with their cars down around their bottom line.
Always the bottom line, isn't it LOL I agree the price of gas is creeping up and I'm bracing for much higher prices this summer. But I am glad to see that gas under $2.00 a gallon hasn't dampened the enthusiasm for more fuel efficient vehicles. Something like 75% of the oil we use here in America is used for transportation of one kind or another. We've got to do something and soon too. Thanks for reading and commenting:-)
robiez
I agree.
It only took thirty years and an economic meltdown to get the ball rolling.
The people should learn from last summer that we cannot count on cheap foreign oil.
You know for Los Angeles and other traffic gridlock areas, the hybrids are great. You rarely get about twenty miles an hour in rush hour traffic. At below twenty miles an hour, you are running on electric, pollution free and quiet. Great for MPG.
Hybrids are getting better every year and as soon as the perfect the batteries plug in electrics will be viable too which will really make a big big difference. Imagine LA with no smog--what a concept eh?
robie2
I agree and a nice thought, although I heard that Los Angels had smog when it was inhabited only by the Indians.
Good hub.
You must be a fan of Kunstler.
By the way, the Los Angeles I live in doesn't really have much smog (it's a big place). Sure it's a problem but we can see the sky just fine in Los Feliz. It's one of America's walkable, close to transit neighborhoods you speak of.
Sorry-- no offense to LA :-) thanks for stopping by.
Eric Graudins says:
13 months ago
Very good hub Robie2.
Similar things are happening in Australia, but to a lesser extent.
I realised to day that a set of tyres costs 3 tankfuls of petrol. they used to cost 11 tankfuls.
I'd urge everyone to subscribe to the free newsletter at www.dailyreckoning.com
This is my favourite newsletter of any type - bar none.
The writing style is superb. It's taught me more about global economics that my uni courses EVER did. Bill Bonner and his crew have been predicting our current reality for a year or more now, and in most cases they've been right.
I believe that what we are going through is not a cycle. It's a fundamental change in the way the world works, due to the emergence of China, India, and many other nations who seek to have a lifestyle similar to the so called "developed nations".
Of course we'll still communicate globally, but things like shipping californian oranges and other fruit over to Australia will come to an end due to transportation costs .
I've also heard that a major US airline is going to be charging $100 for each item of baggage.