Jun 18, 2008 -
Alternative Currents
There have been a lot of reports concerning the value of SUVs and trucks and the forecasted demand for such vehicles. Is such pessimism warranted? On Karl's blog today, there was a statement that the actual value of any vehicle deemed a gas guzzler was naught because of a stance of dealerships rejecting trade ins on such vehicles. While this is an oversimplification, there is a definate negative impact on the economy. Suddenly, SUVs aren't worth the metal they're made of.
Is this a good thing?
As with most answers, yes and no. A dramatic decrease in fuel consumption has the potential to lower gas prices for everybody. Unfortunately, gas prices are not relegated to the world of supply and demand. Instead, it is determined by the futures speculators that, I imagine, are paid by the suppliers of the very commodity they are hired to oversee. Because of this, I do not expect oil prices to drop.
How do we work around this?
First and foremost, alternative solutions need to be researched and developed. There are already a number of economically viable energy solutions available to consumers. If you live in a reasonably windy location (like me), there are companies that sell windmills at profitable prices. If you live in a sunny location, photovoltaic cells can alleviate your energy cost woes. The problems are twofold:
1. It's 'cool' to drive a Prius but not to have a self-reliant source of energy.
2. Initial costs are high and tax rebates require effort, both of which deter most potential buyers.
Enough already! How do we get to point B?
The government needs to become more active in the development of near-free energy. Streamline the tax rebate process or simply subsidize the companies. I guaruntee you if the average joe sees solar panels in Walmart for $200, he's going to buy. The 'cool' factor will follow once people realize how fantastic it can be to be self-reliant.
