Defiantone.com

If you’ve been paying attention - we’re paying more for many of the things that we use daily. The rising cost of oil impacts the cost of transportation, consumer goods, and food. Companies are trying to cut costs wherever possible while trying to retain the most talented and hardworking individuals. Some would blame the war for our economy that is in a downturn. Everything is linked - I read a few articles and found myself hitting CTRL-B five times and I thought it was worth sharing. Each is tied to the other; lets hope that I can explain what I mean.

According to recent polls many Americans have stated that they have felt that it has been much harder to “get ahead.” Our standards of “ahead” have changed since the days when my father was growing up in the 60’s. I’m going to guess that getting an education, having shelter, a good family life, and something (anything except mustard greens) to eat. Times were tough but if you were to persevere you could make a better life for the next generation and hopefully yourself in the process. Now we demand consumer goods as a measure of how well we are doing. Measures of American success include an car (or two), a house, high speed internet, and cable TV. Without these things many believe that they are failing in the race to get ahead. We’re demanding more than ever while overlooking the basics. I’m going to go out on a limb but maybe we should be looking for a little less - check out the full text at the Washington Post.

Some who claim they are having trouble would point the finger at the ever rising costs of the wars in Iraq and Afghanistan and the increasing price of gasoline. While the cost of the war far exceeds most if not all of the original estimates we’ve paid for most of it with credit. Its been added to our national debt and will probably remain for years to come - the price of oil is increasing rapidly due to increased consumption in America and in south east Asia in places like China and India. Companies outside of OPEC control have made few if any significant discoveries in recent years. It takes a considerable amount of time to find a sizable cache of carbon deposits, negotiate drilling rights, and remove them for refining and delivery. Simply put, even if there are reserves available we may not find them before demand outstrips supply. We have plenty of oil to last for the next 20 years but there has been rampant speculation of what will happen if consumption continues to increase at the current rates. If we cannot find additional reserves we might have a problem - we might find ourselves in a global energy crisis. (I hate the word crisis because I feel as if I am on a cable news network where EVERYTHING is a crisis). The futures market has seen this and that is why we are experiencing the recent increase in oil prices - sure - they could have seen this years ago but its happening now. I wonder if they took off their rose colored glasses at some point in the last two years and saw the error of their ways - the end result of their revelation is that we’re paying for it.

We can do our part to consume less but its going to take a concentrated effort. If we were to determine car insurance premiums based upon the number of miles that we drive we could leverage our savings against those who drive everywhere. They would be forced to consume less simply because they would be unable to afford all of the driving. Enacting immediate changes in MPG requirements and subsidizing companies that reduce consumption while taxing those that use heavily could help. The economic impact of such a decision can hardly be measured by me, but, it’s on the table.

Everything is tied together - change is going to impact our ability to “get by” and may impact our quality of life. We cannot continue to increase consumption at current rates or we are going to see a bubble - a big bubble - and only the those with the most resources in the end will be able to survive.

This entry was posted on Sunday, April 20th, 2008 at 7:55 pm and is filed under ahh the news, links!. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.