What's wrong with Detroit?
Chrysler unleashes Dodge Challenger
Excerpt:
It's a difficult time to be launching a $40,000 car with the fuel economy of a large sport utility vehicle. U.S. auto sales were down 8 percent in the first four months of the year as the weak U.S. economy took a toll on consumer confidence.
At the same time, gas prices reached a record high of $3.62 per gallon recently and could climb to a national average of $4 per gallon in the coming weeks. The 2008 Challenger gets 13 miles per gallon in the city and 18 on the highway, the same as Chrysler's largest SUV, the Dodge Durango.
Comment: Kathee and I drove down to Bloomington yesterday and looked at the Mini Cooper and the Smart car. Both very impressive. Meanwhile Detroit still is in "legacy"-mode ... producing new gas guzzlers!
I wonder about gas prices. To me, this is a pretty big deal! I'm beginning to wonder if I'm a minority after 3 recent conversations:
ReplyDeletePerson A) A common millionaire who said he never notices small purchases like gasoline. He said he couldn't care less if gas went to $6.00.
Person B) Average middle-class guy. He thinks people adjust to rising prices and have already and it's not really that big of a deal. They figure out what other areas to cut and then adjust accordingly as if it's no big deal.
Person C) Liberal Democrat - They said that Europe has had much higher prices than we even do now, for years. Americans are "spoiled" and shouldn't complain. It's about time we join the rest of the world in "equitable" prices.
These three people all came from divergent backgrounds and each had different reasons for saying the recent upswing in gas is really no big deal. Am I the only one who is actually somewhat concerned about it and who doesn't think it's just a casual "no big deal" issue???
The high fuel prices are a big deal. They are sucking bucks out of our disposable incomes and sending them overseas.
ReplyDeleteWhat's hurting: Restaurants! Trucking. Anyone (like a small businessman, missionary) who has to travel.
Ya know, anon, all three of your examples have a vested interest in government control. Do they not care, or are they secretly glad that people they aren't like are getting hit hard?
ReplyDeleteAt least the liberal, and possibly also the corporatist, have a clear vested interest here. Makes you think, no?
And besides; if you REALLY wanted to go back to the past, you've got to get down to 10-13mpg for the sports cars. You can't dilly-dally around with burning through your gas tank at a mere 18mpg. :^)
I think the liberal Democrat really couldn't care less. And if they care at all, my guess is that they think it's about time the Americans pay their "fair share" and doesn't mind at all that we are gaining more "equity." This person probably is a believer in central planning and more governmental control.
ReplyDeleteThe millionaire is actually conservative and runs their own business and is not tied in directly with huge corporate interests. They said that they are doing ok in life and even if gas went to $6.00 they probably wouldn't care too much. But, they failed to mention that their shipping costs are going to rise astronomically in their business. I say who cares if you can personally afford to pay high fuel prices if these same high fuel prices wreck the economy which had previously been good to you?
The average, middle class guy I hope is correct. He doesn't want fuel prices to rise, but he seems to think Americans can adjust fairly easily and just cut something else out and readjust their budget without too much difficulty. But if you read the local papers in MN, every day lately there are stories about how high fuel prices are starting to cause problems and people are having a hard time adjusting: Airlines jacking up prices making travel much more difficult, people getting their cars repossessed, etc. JP already mentioned restaurants. They are going to see difficulties if this keeps up.
My hope is that middle-class guy is correct and society will adjust like it's no big deal, although unfortunately I do wonder how realistic this is.