Economic Plan.
Gas has been one of the greatest economic problems the United States has had for years. Rising price of Saudi Arabian oil, dependence on foreign oil and the high number of gas-consuming automobiles in the United States have always worked together to ensure that the U.S. government does not succeed in containing the gas crisis. The U.S. President, Barrack Obama, during campaigns, suggested use of ethanol and replacement of gas-consuming automobiles with hybrids. The use of ethanol as a solution would lead to another crisis as well since ethanol is a multipurpose product the pragmatic solution here lies in the development of hybrid automobiles. The hybrid-electric Chevrolet volt coming out in 2010 may be the solution to the gas crisis the U.S. has suffered for ages. For once we actually have viable alternatives and exiting technology that are game changers in the effort to wean transportation from petroleum. However, if the price of petroleum goes downit undercuts the viability of new technology. This statement was made by Americas leading salesman, Mike Jackson. It seems odd that Americas leading car salesman would want gasoline prices to stay high, given how much damage the recent surge in pump prices has done to demand for the big sport-utility vehicles and pickups that once powered sales at many AutoNation stores. Mr. Jackson says he sees a widespread consensus that, for a combination of environmental and national security reasons, Americans should consume less oil. To that end, Americans want the auto industry to speed production of electric vehicles and high-mileage, gasoline-electric hybrids, while substantially improving the mileage of conventional oil-powered cars. Its entirely possible that a decade from now, well realize that this was a pivotal moment in the auto industry history. This could be the moment when a century of relying almost exclusively on petroleum to power personal mobility gives way to a new model, in which electricity powers our transportation. The question remains why the U.S. remains dependent on oil imports from Saudi Arabia while it has better oil reserves in Alaska.
The future car has become the subject of much debate. It seems likely that most large gas-guzzlers will be out of production within a year or so. Nearly all automobile manufacturers around the world are working on all-electric or plug-in hybrid electric cars that are due to start coming on the market in two or three years. For many observers, the notion of replacing the current fleet of cars with some of the electric ones is absurd. Their argument is that there will simply not be enough resources to make the transition. There will not be enough lithium for batteries global warming and carbon caps will limit industrial production and consumers impoverished by the continuing financial meltdown will not be able to afford what are likely to be expensive replacements for our current cars. If as seems likely, much of the worlds capacity to produce automobiles is going to be shut down in the next couple of years, the likelihood of gearing up and replacing hundreds of millions of cars before sizeable declines in the worlds oil production sets in is remote. Plug in electric cars of various stripes, of course, will come onto the market and it is likely that millions will be produced and sold in coming decades, but this will only make a minor dent in the U.S. fleet of 250 million passenger vehicles, not to mention the 900 million or more that will be running around the world. So what is likely to happen
With increasing gasoline prices and falling family incomes, unlimited use of private cars that nearly all in America now enjoy will start moving back up the socio-economic tree. The fortunate, who can afford the new generations of ultra high-mileage plug-in cars, will not have to worry about increasing gasoline prices, shortages or rationing. For the rest, use of the aging fleet of our current car inventory will gradually be reduced. Car pools and public transit are likely to become far more prevalent. Efficient cars will become more desirable as gasoline approaches unaffordable prices.
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