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Re: Four Wheel Drive SUV popularity



At 12:39 PM 3/27/97 -0500, you wrote:
>Duncan Philips wrote:
>> 
>> In message <199703262350.SAA06261@celeste.INS.CWRU.Edu>, "Ralph E.
>> Cooper, Ph.D." <rec3@po.cwru.edu> writes
>> >
>> >Rudy -- Raise gasoline prices high enough and they will almost all disappear
>> >to be replaced by mass transit and little commuter cars.
>> >
>> 
>> Sorry.. but I disagree..  I'm not aware that this commonly held belief
>> has ever been proved..  here in the UK we pay about three times the cost
>> for petrol (gasoline) than in the US and it hasn't made any difference.
>> All that happens is that people pay more for their transport costs.
>> Remember also that a successful economy relies of distribution of goods
>> and services and restriction of this will have wider economic impacts.
>> 
>> --
>> Duncan Philips
>> e-mail to: Duncan@genesis2.demon.co.uk
>
>Those economic consequences would include lower costs of locally
>produced goods, thus discouraging wasteful transport and encouraging
>local economic development and all the benefits that would follow (local
>jobs, resource management, higher quality goods: we tend to be more
>responsible when the operation is in our own backyard, and the company
>is more sensitive to the community/environment when they are a
>neighbor).  BTW, this discussion is at the heart of what P2 is all
>about.
>
>Why would consumers continue to pay for their gas-guzzling toys even at
>much higher fuel prices?  For that you must look to psychology ("the
>madness of crowds"), sociology (we British are just as successful as any
>Americans, we've earned our toys, i.e., '90's corporate culture), and
>biology (car size and power: dominance and fitness amongst one's
>species).
>
>Laura Lagrossa
>

Economically, it sounds more like a time bomb.  You can't arbitrarily
double/triple the retail price of anything and have a whole lot of good come
out of it.  
el

El Brant
Brant Business Network