MasterPo says: This blog is about topics and issues that are of importance to me. I am not one of the countless blogging lemmings that are tripping over each other scurrying down the hill and off the cliff of blogging oblivion trying to write the greatest blog on the latest topic de'jour. Your comments are welcome.

January 14, 2011

The $3.00 Limit And Beyond

It is said that every man has his price.

For MasterPo that price is $3.00. Specifically, $3.00 and above per gallon for gasoline. It is at this level that MasterPo significantly begins to alter his travel plans and life style.

MasterPo acknowledges it is a psychological barrier more than a financial barrier (though not by much). But when it cost $40 to full the tank after a day trip to the Eastern end of Long Island – before spending more money on food, activities, etc – that is spending which cannot be performed on a weekly basis.

Nevertheless, MasterPo simply cannot be the only one feeling this way.

In the macro economic sense it isn’t just the purchase of gasoline but all the other purchases MasterPo and people like MasterPo will not be making as simple travel becomes more and more expensive.

All the hotels/motels not stayed in.
All the amusement park admissions not purchased.
All the food and souvenirs not bought.
All the clothing, cameras and other supplies people by in preparation for day trips and short term/weekend trips.etc.

This effect gets expanded because with current levels of technology it electric, compressed gas, and fuel cell vehicles simply do not offer the kind of size, range and features someone with a family needs (you can’t fit 2 adults, 2 kids, car seats, bags etc. in a Volt and go on a 100 mile round trip in a day).

Free movement about the land is the corner stone of American liberty. But people have to choose between travel and food, housing, clothes etc. Some people have no choice but to drive for work and personal commitments. But for a great many others driving is more an option and when faced with rising costs and stagnant (more or less) wages something has to give.

For MasterPo most of driving is for pleasure not for work (other than the daily commute to/from work). So when push comes to shove pleasure can and will be reduced for the necessities of life.

But multiply that out and the ripples throughout the economy will be vast and deep reaching.

Maybe a horse would do better?

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