We Pay the Most for Oil

Re: [spiers] We Pay the Most for Oil


On Fri, 3 Mar 2006 13:51:07 -0800 (PST), M A Granich wrote
:

> > (Never mind the
> > SUV was a response to mileage rules
> > killing the family station wagon).
>
> I contend People buy SUVs because that is what they
> want.

***Yes, a rational choice once all of the effects of subsidies, protections,
restriction, etc
imposed on the market shake out and settle down, the customer then rules.***

The fuel efficiency of the Station Wagon,
> regardless of government requirements, has very little
> if anything to do with its demise. The station wagon
> tanked because the SUV is a better choice. However,
> fuel efficiancy of the SUV has killed sales as the
> price of gas has risen.

***What about the problem of 3 years of giving away SUV's at a cost lower than
they make
them... with all of the incentives, might there have been other factors? Is it
possible the SUV
portion of the market is satiated, for now?***

The government could save the
> SUV by imposing fuel efficiency requirements on them.

***Is that the governments job, of an auto companies job? If both, why ought the
government help the auto industry, and not the glassware importers industry?***

> There is something else going on but I don't know
> what. You can certainly make a more fuel efficient
> SUV but car companies are not, Why?... Boeing
> Aircraft makes fuel efficient airplanes because that
> is what its customers want and need to stay
> profitable. Wouldn't John Q Public want the same
> thing?
>

***Yes, a rational choice once all of the effects of subsidies, protections,
restriction, etc
imposed on the market shake out and settle down, the producer then rules.***

> > It is government policy USA pays the most. This is
> > no secret, And it is no secret the oil
> > companies have done tremendously well, the best
> > ever, with this policy.
>
> I'm only an armchair economist, but.... This policy
> could not be sustained. The higher the price for oil,
> the more the door opens for alternatives. And, high
> oil prices hurt the economy by driving up costs.
> People spend less, factories produce less, people
> loose jobs, etc... then you kill off demand for oil.
> Oil companies would be shooting themselves in the foot
> if they supported this.
>
***Yes, like the US Steel industry, like the US Auto industry, like the US
garment industry, like
the US furniture industry, like the dot.com deal, housing, food and medicine are
in line for
their turn...it how it works when big biz signs on with big govt.***

John

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