Avoiding Easter Island dynamics is, to my way of thinking, worth some effort and inconvenience.
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I'm not too familiar with the Easter Island example, but I would say that North America is far more diverse and technologically savvy than Easter Island, so I don't think it will plunge into chaos if the price of gas goes up too much. European consumers have gotten used to paying quite a bit for gasoline and it doesn't look like the price of gas in the United States will reach European levels any time soon.
As the article mentions, the market will adjust to a price rise, just as it does for any other product, by changing their consumption patterns.
Thanks for writing,
Mike
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Hello Mike
A good article and one that echoes discussions I had in my college years (1960's) To quote Johnny Carson - or better said to paraphrase him -"There isn't any 50 cent gas, but lots of 70 cent gas". With advancing technology I am sure that the supply and demand curves will prove the day. The interesting thing is that the last big glut of gas guzzling land yachts was in the late 70's (I think) and almost ended Chrysler. I wonder when the industry will wake up and smell the alternate fuels.
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Thanks for your kind words,
We can blame the industry all we want for not making more fuel efficient cars and for not providing cars that run on alternative fuels. The reality of the situation is that auto manufacturers are not going to provide such vehicles until there is demand for them.. which there isn't at all right now, atleast in the United States. I don't see too many hybrid cars on the road, but I do see a whole lot of shiny new Lincoln Navigators and other big SUVs. Until the price of gas rises dramatically people will not change their consumption patterns, as they seem to be more than willing to buy large quantities of gasoline at current prices.
Cheers,
Mike
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