Wednesday, March 09, 2005

depopulating the freeways

Would You Pay 4.76 Per Gallon for Gas?
Then you have folks like me who arrive extra early just to get a parking space. I arrive alone, just me, my car, my messenger bag and my iced soy mocha. The point of this boring story is a parking shortage turns to car pooling. So why aren't people just as concerned about car pooling with gas prices skyrocketing. Gas is currently at $1.98 a gallon in my city and I find myself only putting half a tanks worth in my 4-cylinder VW Golf because there isn't enough money to fill the tank, buy my groceries and pay my bills.

Some thoughts on the implications of higher gas prices over at The Correction. I know where I work some people are feeling pinched driving, and have budgets stretched tight already. Whatever mealy mouthed lies Alan Greenspan is mouthing about inflation, American buying power has been severely curtailed since the nineties. Medical costs, gasoline, stagnant wages, falling dollar. The frog feels fine.

Obviously, people are going to start finding alernative ways to get to work, even if it is ride sharing - something that previously may have seemed to take too much personal energy to bother with will suddenly become necessity. I think the price estimate of $4.76 for gasoline is low if we hit $200 a barrel. It is not a straight multiplier. Refinery costs, fear, and distribution issues will push it up.

Look for a noticable change this year. Someone sent an email at work today, trying to dump their SUV. "Drives great! Low Mileage!"

I'll bet.


At 7:32 PM, March 09, 2005, Blogger said...

You're right, $4.76 is a straight multiplier. Imagine how much more frightening when you add the production costs plus the run-ups and lastly, we can't forget taxes.

At 10:21 PM, March 09, 2005, Blogger Phila said...

And the funny thing is, it'd have to be about a thousand bucks a gallon to cover the externalities.


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