Originally Posted by
squirrley
I told Chris we should start a boycott on gas. Just one day not one consumer purchase gas, what would happen? Or even 2 days? Wouldn't that say something??? What do you guys think?
You consumption of gas.., will have an impact.., but the majority of the energy consumption comes from you (indirectly).., either through electricity (home appliances).., or industry (products & services) you buy..
No matter how you look at it.., you can't avoid it..
I thought what was comical was New York State Senator Chuck Schumer's proposal to Congress.., about our "solution" to our gas crisis.., "two words.., Saudi Arabia! I ask Congress to ban a weapons agreement to the Saudis unless we see lower oil prices.., and then we'll see how fast prices drop under $3 before the summer".., nice one genius.., let's make threats at the Saudis.., and right after they laugh.., now that our army is battered and in ruins.., now that we are almost politically hostile towards the rest of the world.., that the rest of the world (with the exception of a select few counties) sees us as an international evil.., let's make threats and destroy the relationship with the one country that has the power to actually increase oil production in the short-run.., (Harvard LAW buddy.., not Business School.., leave such things to Economists & Political Scientists)
As an economist though.., i'm actually thrilled with the outrageous gas prices.., and trilled in the most positive of ways.., that's right..
In economics.., it's all about incentives.., you can pass all the laws you want.., for automobile makers to make cars more fuel efficient.., for companies to start conserving energy.., and for researchers to find more efficient and financially feasable alternative sources of energy.., but unless it makes "sense" to (benefit > cost).., that just doesn't happen.., none of that process starts falling into motion..
Now however.., gas & oil prices will impose a serious short-run AND long-run cost to almost every industrial sector.., every business.., and every consumer.., They really are.., over the top.., unreasonable.., and no longer a cheap source of energy.., and with both financial and environmental incentives in place.., you're going to see this.., (cost > benefit).., and you're going to see more fuel efficient cars (because consumer demand for less fuel efficient cars will be so low.., and demand for more fuel efficient cars will control).., you're going to see more "green" appliances, offices & homes.., and more importantly.., you're going to see a lot more developments in alternative energy..
The US is actually blind when it comes to the political strategy of the Middle East.., the middle east could care less about revenue from oil.., it actually hasn't increased the price of oil.., the middlemen have.., both American & European companies.., all it refuses to do.., is increase the production of oil.., (light.., sweet & crude).., which would not really bring the price of oil down.., it would only reduce the cost at which these companies have to pay for oil.., but they don't set the price of the finished good.., "gas".., and the price would unlikely change.., so the only thing they would be doing by increasing production.., is increasing the profits of American & European companies.., to add to that.., they actually want to destroy any economic incentives Americans may have to still be involved in the Middle East.., that's right.., they actually WANT oil to be less valuable.., and America out of the Middle East.., because when America is no longer interested in the Middle East.., that leaves one little nation in the Middle East defenseless.., so it's actually a long-run goal to find alternative forms of energy.., and for the Middle East.., the time couldn't be more perfect to give "exactly" those kinds of incentives to the U.S.
You can't let the little things distract you.., you have to look at the whole picture.., and in the long-run.., the U.S. doesn't really have a choice.., they're in no position to make an other grand military assault.., (both because of a weak military that needs rebuilding.., and because of international pressure).., but also.., because the economy is actually rebuilding now.., domestic issues control.., politically.., for the next 8 years.., you're not likely to see the US be too involved in the Middle East.., international markets (inclusive of the US) will adjust.., they have no choice in the matter..
If you want to "boycott" gas.., then the way to do that.., is by taking away any demand you have to products or services which are (not fuel efficient).., and increasing your demand for products or services which are (fuel efficient)..
Examples:
- Buying an SUV with low gas milage.., is not boycotting gas
- Buying a hybrid or even a car with high gas milage.., is boycotting gas
- Turning off your computer and unplugging electrical devices
- Buying "green" devices or "mobile" processors
- Installing solar pannels on your home.., etc
When you look at what that means.., when you increase the demand for things that require less gas.., and decrease the demand for things that require more gas.., you are in effect.., creating positive incentives.., for more fuel efficient products & services to enter the market.., and things not fuel efficient to exit the market.., and by doing so.., you reduce and significantly decrease the demand for gas..
That is how you.., we.., the average consumer.., can help do our part.., not directly.., but indirectly.., we can all make a difference.., and it will count.., the only ones who have to lose.., are gas companies.., the only ones who have to gain.., is everyone else..
Best,
GrkScorp