Originally Posted by
zman1
http:///forum/post/2516362
The difference is that the people can choose other fuels sources than McDonalds for their body. However, you don't have other fuel sources for all our cars or trucks. Yep the consumer is paying more for everything since all businesses have been impacted by high fuel cost. It' not a widget you can choose not to buy...
Ahhh... but think about it in the big picture.
It ultimately does come down to consumer choice in the big picture. Hybrids are a proven technology that uses very little gas. Investment in alternative technologies such as fuel cells, solar, electric, etc, etc, etc has a direct impact on the time to market for those technologies.
The space race is a prime example of how quickly something can be accomplished when you throw virtually unlimited funding at it.
Back to consumers... we are consumers do have some level of choice. We have it in the vehicles we buy most notably. Gas prices are high. But people still buy gigantic SUVs when mini-vans will do. They buy sports cars when basic transporation will do.
We are consumers are ultimately driving the industry (no pun intended). We demand unnecessarily. People have to get to work... sure. But they can get to work just as easy in a 4 cylinder Civic as a 8 cylinder Porsce.
Yes, the car is necessary, but consumers are not yet hurting enough to let the pain of high gas prices deter them from splurging on creature comforts or status symbols.
The last time I went to London was June of last year. Over there, gas is over USD$6 a gallon, but nobody is complaining. Why? You look around, and everyone is driving small, sensible cars. They pay $6, but their cars go 3 times as far on a gallon as ours do, so it's like paying $2.
So yes, consumers do have some choice, and their choices affect demand, and demand affects prices.