The “oil economy” may be in a state of flux, perhaps even a bit volatile, but I’d hardly say the collapse thereof is imminent.
The one thing that contributes largely to this volatility seems to be the one thing Robert Rivard of the San Antonio Express-News suggest employing to help us in his piece this morning ("A new energy economy in S.A. could be the next big thing": http://www.mysanantonio.com/columnists/stories/MYSA.052508.METRO3BRivard.2f26c04.html): more government. It is a good thing that gas prices are spurring the search for other forms of energy, but it is artificially inflated due to too much government involvement in the market via excessively low interest rates, restrictions on domestic production and refining, etc. Hopefully, the new finds in Brazil won’t head off at the pass sources that have become more viable due to high prices, such as the tar sands in California. Those are two examples right there that, if government would just get out of the way, new supplies would start flowing into the market and perhaps stabilize, if not bring prices down eventually.
Another example is his suggestion of offering Toyota incentives to switch the local plant from producing Tundras to hybrids. They simply need no such incentive. It’s like throwing gas onto a fire. They’re sales have taken a dip, as have truck sales in general. That’s all the incentive they need!
There will be clients for such alternatives when they become economically viable. Nothing would make me happier than to spend less on gas. But instead of looking at Priuses, I’m looking at scooters. It’s just not worth it to my family right now to spend a few thousand on a hybrid when my Camry does OK. We know two people who have Priuses, and we applaud them. They are the types of people who brought down the prices of flat screens. They wanted the product, regardless of price, and as more people bought them, the prices came down.
Surely, though, he doesn't believe in a free lunch. There’s no such thing as free bus ridership. The buses will not be maintained, tanks be filled, drivers be paid with money that comes out of thin air. The funds will come from somewhere, and that somewhere will be increased taxes, likely paid by people who still will not ride public transit.
Here’s hoping his “mandatory recycling program” only includes a recycling can for every trash can. The last thing I, or any freedom-loving American needs is to be forced to do something I may (which I am), or may not already be doing.
