This was an interesting article on MSN about $10 gas. The article suggest that in the short term people would be feeling the pain of $10 gallon/gas. Lower class people would be scrambling to cut their budgets to the core to be able to manage.
Truth is that the US has long been spoiled by cheap gas. And yes we do not have public transit but we also make no attempts to carpool or implement public transit measures like in other countries. What will it take for Americans to make the switch?
I mean in other countries people get by with 2 children in cars the size of a VW rabbit. Many more own smart cars, which are only now breaking into the US market. But how many parents out there would actually drive a smart car with 2 children?
Also would it change our idea of what is necessary? Is it necessary to have a large SUV/Truck? Or do we need a McMansions that are only found in the newly built suburban divisions? Will people start to move closer to where they work? Will we stop chasing deals around town for the “cheapest” prices and instead start shopping locally?
I am unsure what will happen. But I will say that DH and I chose where we lived because of it’s proximity to the city. Many of our coworkers commute 1 hour + in order to afford a home. Will this make places like our home more desirable soon? Because people will start to look to move closer to save on gas?
Will you change anything as gas continue to increase? Right now it’s $4/gallon, when it hits $5/gallon as many economists predict because of the high price of oil futures, what will you do?
6 responses so far ↓
1 Fabulously Broke // May 18, 2008 at 10:28 am
I don’t drive… so I can’t be of any help, but I’m going to keep travelling on public transit, and THEIR prices are jacking up too… *sigh* No choice. I can’t walk.
2 Fabulously Broke // May 18, 2008 at 10:29 am
PS.. am linking this in my next round of link love
3 Meg // May 18, 2008 at 7:38 pm
I just wrote about this topic, so I’ll just give you the link rather than repeating everything here:
http://www.allaboutappearances.info/10-things-that-really-need-to-change-to-solve-the-gas-problem/
(By the way, the tone of the post is not due to your post specifically. It was actually provoked by a few other posts I read recently.)
4 Livingalmostlarge // May 19, 2008 at 1:39 am
I am still going to rant about everyone needing an Excursion, F-150, etc. Why do they need trucks/SUVs that large?
5 Simon // May 19, 2008 at 6:55 pm
Having lived the first 23 years of my life in Europe, in fact one of the pricier countries (cost and taxes), England, i have a good idea of the kinds of cars people drive over there and the dent that gas prices make in your wallet. I bought a reasonable sized car when i first moved here, however it was also the base model for that manufacturer (as are most smaller sized and economical cars) - the thing was a pile of junk and i should have lemon lawed it. I had to replace it after 5 years as it was becoming unweildy and even broke down several times on the way to trade it in (no way i could live with selling this privately, the guilt would have been too much).
We bought a mid-size SUV with some bells and whistles as our new family car for the two of us, the dogs and first child (of several) on the way. That SUV is now our only gas powered vehicle as we sold the other, working, but slightly too small car (for the lifestyle detailed above) that my wife came into our marriage with. Thankfully we moved to a place where we can commute with relatively little gas use as well as run our errands in close proximity too (no more than 4 miles to our furthest stores, most within 2 miles). We fill up every other week and while the mileage isnt great as its mostly around town driving, its pretty limited in distance.
I think even if gas went up more, we would probably stop doing a few things, but still keep the SUV as it is very useful - as found with multiple trips to the hardware store with the new house, as well as doing family related things with a car and trunk full of stuff.
IF we had a long commute like most people we would probably pool in a smaller car and keep the SUV for the weekends etc when we needed it, but thankfully we dont have to make that choice as we chose the house nice and close in. I cycle 3 miles to work every day, my wife is only a mile from the house. It works for us for now, we’ll see when gas goes up more how we respond.
6 Pete @ biblemoneymatters.com // May 27, 2008 at 8:57 pm
To some degree I don’t think more expensive gas will change people’s habits over the long term. ($10/gallon might though)
For the short term people will try to cut back on driving and save, but as they get used to the higher prices, it becomes the norm and they forget how much they hated paying for more expensive gas. It becomes accepted.
I think people in this country just enjoy driving their cars/trucks too much!
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