Erik's Rant
 

May 26, 2007

Excellent Points...

No, this blog is not going to become Erik's Perpetual Commentary on TSO, but you should read what he has to say here.

He is spot on. The high gas prices (we are at about $3.40 a gallon in California) cost us an extra fifty bucks a month. A pain in the kiester, but not the end of the world, and that, combined with the dollar toll increase, has made me more inclined to use BART when going to the City (we get public transit fare with pre-tax dollars).

Part of this is that, due to our Explorer's crappy mileage, a trip to the City costs about $12, not counting parking or coffee or food or doing anything that costs money. So, four trips a month saves me $48, and that is four decent bottles of wine. I like spending money on wine more than on transportation.

Of course we don't really commute by car, and we have not gone on a lot of road trips. Even so, this is hardly the stuff of "major financial crisis." You can budget and plan for these things. And if you can't, well, that says more about you than it does about the price of gas.

PS. Of course when the price of gas jumped a few years ago, I used that as part of my justification to raise my writing fees, but you have to make your fee stay in line with your costs of doing business.

Posted by erik at May 26, 2007 10:24 AM
Comments

A few things about why gas prices get so much attention:

1. They're the most visible prices. No other prices are displayed on the roadside in foot-high red letters.

2. There can be some ripple effect as items shipped by truck can either have a marginally higher cost or at least a convenient excuse for a price increase.

3. Media folks especially are completely clueless when it comes to simple economics. They can't understand why energy prices might be higher now than they were in, say, early 2001.

4. Most folks in media are antagonistic toward profit by businesses outside media, stupidly ignoring the fact that bad times for other companies will result in bad times for media companies and the trained monkeys on the airwaves.

Posted by: Gregg the obscure at May 26, 2007 3:59 PM
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