[PRCo] Re: Gazzz

[Bill Robb]

There may be a fundamental change in the economy
occurring.  We have seen high gas prices for two
summers in a row. It's been caused by somewhat
uncontrollable factors. Auto makers are faced with
suppliers going bankrupt. Last time something like
this happened was when many of the manufacturing jobs
disappeared in the late 80s and early 90s. It'll be
interesting to see what happens to gas prices next
summer

Not too long ago I was in a local cafe and one of most
prominent local car dealers was there. He was very
publicly telling another business man that business is
much harder than it used to be.  Cars last longer
(usually about seven years), people keep their cars
longer and the auto companies don't even seem to make
money making cars any longer.  GM makes more money on
financing than auto sales.  As gas prices kill SUV and
truck sales and the huge SUV profits disappear it can
only get worse.

I recently read an article suggesting the reason that
trolleys disappeared from the scene was that they did
not have the profit potential that autos, road
building, gas refineries, auto insurance, and
hospitality facilities brought to the economy.  Macro
economics killed the trolleys.  The car culture
provided more employment and wealth creation
opportunities than the efficient networks of trolleys.

Now the car culture that supports much of the economy
could be on life support.

Bill Robb



--- "James B. Holland" <PRCoPCC at P-R-Co.com> wrote:

> Fred Schneider wrote:
> .
> 
> > .......Suggested solutions are to tax people by
> the miles they drive 
> > instead of the gasoline consumed, start a campaign
> to get people to 
> > drive more and to discourage the use of mass
> transit.
> 
> .
> .



		
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