How the Gas Crunch is Hitting the Pocketbook

I learned how to drive during the 1970s when we had to wait in line for gas, and we had to fill up on even and odd days. Oh, yes, those were the days! At least they are, according to today's oil crisis. A gallon of gas in those days didn't cost you one whole bag of groceries. Well, maybe that's exaggerating a bit, but it's close to the truth. So what gives? Can we survive in today's world without taking a second mortgage out on the house? Well, perhaps we shouldn't joke about mortgages nowadays either. So, what can we feel good about?

If you are a typical American, you have been scratching your head for a couple of years now, but probably not as much as today. I don't know about your town or city, but around Pittsburgh, Pennsylvania, the average gallon of gas is around $3.29 and counting. I don't need to source that information: I can see it on every gas station sign in the region. Yes, $3 and still rising! So, what does a person do in this instance? Well, you first have to consider what all of this pricing and analyzing means. Then, you come up with a plan and hope it works.

First of all, my wife and I are average, middle-class working people. We don't make a whole lot, but we keep our options open and we have been able to do pretty much what we want the last 15 years. (We've been married about that long.) About three years ago, we saw all of this coming and went from three cars to one. Imagine that, an American family without an SUV, two or more cars, or both.

It meant we had to watch carefully what kind of job we took, where we needed to go, and what we needed to do. So, we went from spending about $75 a week on gas to approximately $20 in the same time. Well, wouldn't you know, when the prices started going up past $2.50, our cost went up to about $27!

We then began to travel less: cut down on leisure trips, you know, the senseless visit to the corner store, the just-get-out-of-the-house kind, and we began to look for new jobs. I was traveling and parking in downtown Pittsburgh, so after I got out of my previous work position there I began to work closer, and even sometimes at home. we kept the gasoline bill down to a reasonable mid-$20 deal. Then, gas went up over $3, and that put a stop to frivolous spending, like getting pizza and buying a newspaper every day. After all, couldn't I watch the news more often? Scary thought, being the news is usually so negative any more. Anyway, our budget has steadied itself as a result, and we are managing. Of course, our mortgage is another story, but isn't the subject for discussion here.

Well, here is the situation: we can influence what is happening, if we would be willing to sacrifice a bit. You say, "sacrifice"? What is that, you ask? It isn't as bad as you might think, but the alternative might give you something to scream about, like stop your life or lives altogether and give up everything! So here is the situation at hand, if you want to fight it. Contact your local politician or elected officials. Tell them your sick and tired and want something done. You can do it, you know, I mean, contact these people who you elected to serve the public interest. Well, maybe that is a stretch because I think anymore we elect them to let us joyfully serve them, but that is another matter.

Anyway, you suggest that we take some action. It isn't the typical action; it's a bit different. You see, after listening to talk shows and doing a bit of research, the answer is not to simply blame the oil companies, those big, bad profit-making machines. We haven't built enough oil refineries to keep up with the gasoline we need. Do the research and you'll see. Also, you need to tell them that you're sick and tired of being dependent on foreign oil. Does that mean we have to find our own? Do we have to, heaven forbid, ruin our environment to do it? Not really, if we start looking for alternative sources of oil. Here's an idea: what about hydrogen peroxide? I read once where the Germans used this for some of their newer u-boats near the end of WWII. And don't tell me that the oil companies won't go for it. We've been using that excuse for many years, and think about this: the oil companies can actually invest in the making of these alternative fuels. To admit that the most powerful country in the world is dependent on OTHER COUNTRIES to fuel our economy is sad and, well, downright depressing!!! So take some action, get your voice out there, and tell the powers that be that you want real change, as far as oil prices are concerned.

One last idea. I used to teach marketing and one thing I learned is that oil/gasoline is what we call an "inelastic demand" product. In other words, when the prices changes the relative need for the product neither drastically increases or decreases. It effects everything else in our economy. What many in the media and press do not realize is that oil just doesn't effect what we put in our gas tanks; it effects what we put on our tables, what we wear, what electricity and heating source we use, and everything else we can think of. To raise a gallon of gas thirty or forty cents more a gallon is nothing compared to the residual effect is has on distribution, manufacturing, well I think you get the picture. So raise heck, holler at someone a bit and make a difference. We will all need to do this before it's too late. By the way, I have even canceled my normal summer trip to the beach to save money, so all that money I used to blow on the local economy down in Ocean City, Maryland, is now staying nearer to home. Or at least for my car's behalf.