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US Gasoline Prices Spur Telework
coondoggie writes "The price of gasoline may finally be changing the way many people commute and communicate. Anecdotal evidence says teleworkers are growing rapidly as a direct result of the cost of driving. The article links a survey indicating that in Q1 2007 the 19 largest US cable and telephone providers (representing about 94% of the market) acquired over 2.9 million net additional high-speed Internet subscribers, to a total of about 56.2 million. That can be attributed in part to more employees taking advantage of telework programs, experts say. Just this week the House Judiciary Committee's antitrust task force opened the first of a series of hearings on the oil industry. Its chairman noted that gasoline prices have soared well above $3 a gallon and asked, 'How did we get into this mess?'"
Urban sprawl, SUV's, and lack of MPG targets for manufacturers. Average MPG hasn't changed much since the 70's. I also haven't noticed any change in peoples driving habits. People still tailgate, race to the next light (even though it is red) etc. I guess they have money to burn.
There is no good fix for the sprawl. The other two are at least somewhat addressable by some means of legislation or industry curtailing.
Even those who arrange and design shrubberies are under considerable economic stress at this period in history.
How did we get into this mess?
We were given a whack in the head about thirty years ago. We got up, dusted ourselves off and carried on as if nothing had happened.
Such high prices in Europe does not hurt the European standard of living because many Europeans use public transportation; bus and trains are relatively cheap to ride. In the USA, many Americans refuse to use public transportation due to class snobbery. In my neck of the woods, about 80% of the passengers on the bus is either impoverished Americans (from ghetto neighborhoods) or illegal aliens from Mexico. The occupancy of the buses is about 50% during most of the day. Meanwhile, the freeways are packed with late-model cars driven by the wealthier class.
Frankly, even if gas prices increased to $10 per gallon in the USA, Americans would not necessarily experience a decline in their standard of living -- if they use public transportation. It is cheap although it may be slighly inconvenient because you must time your life according to the bus or train schedule.
Note that American politicians never compare European gas prices to American gas prices. The politicians just tell Americans what they want to hear: "Gas at $3.50 is too expensive. We Americans are a sad, pathetic victim of the greedy oil companies. We should force them to lower gas prices back to $1.50 per gallon so we can enjoy your monster SUV."
These are the same Americans who overwhelmingly supported the invasion and occupation of Iraq.
I'll support these outrageous gas prices if they're finally high enough to make people rethink their horribly inefficient daily commutes. I find it wrong that there is such a huge flow of cars going back and forth every single day.
It isn't just what we personally spend on gasoline. I've noticed prices on fresh produce and other things in the grocery store are up too. High fuel prices affect the price of everything. Almost everything in the store came by ship, truck, or train. That takes fuel and higher fuel costs are passed on to consumers. High fuel prices are costing you more than a 0.15% household budget increase. Some families have to do more driving than you do so the direct costs for others is higher as well. That means many people stay home more and spend less when they are out. That will ripple through the economy as well.
This is a much larger issue than your monthly gasoline bill.
If Americans drive further, why do they choose less efficient cars? You'd think that if you're driving 100 miles to buy a newspaper you'd get the most efficient car possible.