It is so very unnerving when we are filling up our cars at the pump. We see the digital readout of our total sale, and there is always a bit of sticker shock. I know it makes me sound old, but I can clearly remember days of getting one gallon of gasoline for $1.
Well, to be the bearer of bad news, gas prices are not going down. They are not going to be falling back to $1 anytime soon. Perhaps after the upcoming election, there will be a big enough shakeup in state and federal taxes to where prices can drop to around $2 per gallon. Bur the numbers simply do not support this hope.
A number of prominent economists have spoken of gas perhaps going as high as $10 per gallon within the next year. If that isn't frightening, I can't help you.
Gas is strangling this entire economy. Food prices are one of the more obvious areas where gas prices raise the costs on everything else. Milk, produce, bread and everything else are getting more and more expensive. Truckers, especially owners and operators are fighting off impending bankruptcy as gas prices creep higher and higher. In this economy, though, there are still ways to stay ahead of the game.
There are industries in our society that sustain themselves, even in the tightest of economic crunches. These are areas such as health care and security. No matter how tight the average American's budget gets, prescription medicines, hospital care and related industries will forever be in demand. Another industry, the security and safety industry, is one that is largely unaffected by a struggling economy. Police officers, fire fighters and hired security will always be in demand, no matter what the stock market may be doing.
There are even industries that have been thriving because of rising gas prices. One of the largest of these has been the motorcycle industry. Most motorcycles, when used simply for commuting to and from work, can maintain efficiencies of 50 miles per gallon or even more. It is hard for anyone to truly pass on the idea of doubling or even tripling the mileage people can achieve in their cars.
The railroad industry is also looking to capitalize on the oil crisis. Railroads have incredible fuel efficiency considering the amount of freight they carry. They are currently trying to take on much of the commercial shipping that takes place on semis. The rail companies could be a great way to put money into an industry with a bright future in this economy.
One final recommendation looks not at the record-high gas prices but rather at the mind boggling profits the oil companies are collecting these last few months and years. If people are so completely fed up, why not buy stock in these companies. They are making record profits. Why shouldn't the average consumer make some money off them? It makes good financial sense. All people need to do is pay attention.
The gas crunch hurts everyone. It is a fact of these economic times that cannot be quickly solved. All we can do is take it on as best we can. Gas prices may go down. We all hope they do. But with wise investment and resourceful decisions, $4 per gallon gasoline can take a smaller bite out of our wallets.
Write to Alex atapcarroll@bsu.edu
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