As gas prices rise, number of people using mass transit soars

[NNN0LHI]

http://www.sun-sentinel.com/news/palm-beach/pb-bus-ridership-up-20110424,0,3668920.story

By John Lantigua and Ana M. Valdes, The Palm Beach Post

5:52 p.m. EDT, April 24, 2011

Francisco Burgos stands patiently next to his bicycle near a bus stop at the West Palm Beach train station. Beyond him, on Tamarind Avenue, cars zip by as rush hour begins.

Until this month, Burgos, 45, could be found behind the wheel of his gas-guzzling Ford Explorer at that time of day, returning home to Haverhill from his mechanic's job in Riviera Beach.

Not anymore.

[tridim]

1. Demand drops more, supply up much more.. Prices continue to rise.

Fucking oilman assholes.

[Psephos]

5. The rises are due more to financial speculators.

Oil is priced at the margin (the demand for the last few percent of supply affects the price of the whole supply). Demand for oil is notoriously inelastic - it barely budges despite big price swings. It takes a monumental price increase to really affect demand. We may be getting close to that now.

Current spikes began when speculators factored in anticipated future supply problems, especially after the uprisings in the Middle East. At a certain point (which we have passed), oil price becomes a bubble movement - it keeps going up not because of supply/demand imbalance, but because speculators think it will keep going up. That bubble will pop sooner or later. Last time it popped (July 2008) was the same day Bush announced an end to the offshore drilling moratorium. Not that that made any difference in actual supply - it simply provided a turning point in the speculative psychology. Remember, this was before the whole Lehman Bros/mortgage meltdown. The economy was still growing at that point...but oil demand was falling.

No one wants to miss out on the speculation profits when a bubble is inflating, and no one wants to be the last one holding the bag when prices crater. So the pressure is huge on the upside as well as the downside.

If I were prez I'd be thinking about what I could do to provide a psychological exit point for speculators who get more nervous with every uptick. Stern warnings and lectures mean nothing. Appealing to their sense of fear about being caught long in an overpriced market means everything.

[gratuitous]

2. This is bad news in a consumerist society

People will, as they did a few years ago, begin examining their consumer choices, and working at ways to cut corners financially. When consumers stop being mindless and start being mindful, they start trimming the frills, and more things qualify as frills. For an economy like ours that depends so heavily on credit card indulgence and non-essential purchases, consumers looking at their purchasing habits is very bad news.

The oil companies will realize their bonanza, of course; but a lot of other segments of the business world are going to find the going a bit rough as consumers hand over all their money to Big Oil. And who knows? If consumer demand is high enough, maybe public transportation will carve out a larger piece of public life. Just maybe American consumers will disregard the siren song of unlimited personal choice and adjust to a more communal lifestyle?

Naaaaahh! What am I saying?! Mindless consumerism today, mindless consumerism tomorrow, mindless consumerism forever!

[hobbit709]

3. That's great if there is decent reliable mass transit available.

At my last real job back in 2001 it would have taken 5 hours total travel time on top of a 12 hour shift. 3/4 mile from my house to the bus stop(which used to be across the street until the route was changed), two bus changes with a 25 minute wait at each one and another 1/2 mile walk from the last stop to work. With the diabetic neuropathy in my legs that would have been lots of fun.

30 minutes to work in my truck in the traffic, 10 minutes home from work at 6 AM-no traffic.

[jpak]

4. The GOP will always make sure there is no "reliable mass transit", only smelly homeless folks use it

see?