Posted on 05/15/2007 8:11:42 AM PDT by newgeezer
If you've checked your e-mail in the last week, you've probably seen a message forwarded from a friend, urging you to boycott gas stations on Tuesday. The aim: To teach greedy Big Oil a lesson.
But economics Prof. Pat Welch of St. Louis University says the real lesson is that the boycott won't work.
"Needing gas ranks third behind needing to breathe and needing to eat," he said this morning. "If you need gas and you don't buy it on May 15, you'll buy it on May 16, or May 14."
Welch cited an iron law of economics called "inelasticity of demand."
Welch's translation: "It means that buyers are unresponsive to price changes." The reason? "It's a demand for a necessity, not for a luxury. If there aren't a lot of substitutes, there won't be a big swing away from gasoline as the price goes up.
"The only alternatives are MetroLink and your bike. A car is more of a necessity than most people give it credit for."
Welch said that even if the boycott cut gasoline sales on Tuesday, it would do nothing to change total gasoline sales for the week.
"I suspect that the organizers of the boycott realize that they won't have any significant effect over the week," Welch said.
"Their effort might be better understood as a statement, not an an economic strategy."
(Excerpt) Read more at stltoday.com ...
So, that's going to "teach greedy Big Oil a lesson"? They don't realize jack.
Normally, I would have filled up the van last night. But, just for kicks, I put 17 gallons in the tank a few minutes ago. :)
Bwaa HaHaHaaaa!! I really needed an economist to tell me this /s
If you drive a diesel like I do, you can always run on vegetable oil or recycled grease from restaurants. People with gasoline engines have no recourse but to buy from a gas station.
If you want to put pressure on the price of gas, then use less of it (or blab on various web forums to get everyone else to use less, so you afford to buy even more at the lower prices).
I’ve come to suspect that the oil companies have let the environmentalist prevent the building of mare refineries just to allow the price to go up. After all it will be easier to build new energy infrastructure when the public is crying for relies instead of screaming NIMBY.
I have not filled up in a week however, I drive a Saab and get 31 miles to the gallon. Nice change from my MBZ that was unable to pass a gas station without visiting.
Never heard a thing about it. I wouldn't have joined the boycott anyway, unless it was against Hugo Chevez. Then it would have meant something.
I got this email and thought it was stupid for this very reason. If the organizers really wanted to make an impact, they should have asked everyone to stay off the road for one day; not use gas at all. Not filling up for the day has nothing to do with anything except postponing your gas purchase for the next day when, in all likelihood, the oil companies will raise their rates.
Some people do. On a local radio station callers were acting like this would bring BIGOIL to its knees if there was 100% compliance rather than just let Skippy the cashier sleep behind the counter for the day.
I have a flexible-fuel van. All I need is a still. ;O)
There's a station selling E85 a couple miles from my house. So, when gasoline is priced around 35% higher than E85, I'll consider using E85.
Some people do. On a local radio station callers were acting like this would bring BIGOIL to its knees if there was 100% compliance rather than just let Skippy the cashier sleep behind the counter for the day.
****
One of our local tv stations interviewed a spokeswoman for the local AAA — she indicated that apparently, this campaign mentions at least one supposed incident where s similar boycott practically ruined the oil companies. Urban legend, she said.
It’s a stupid idea. If you’re not buying, then how do you benefit from the lower price caused by your lack of buying?
Our Saturn gets 40. If it starts to go lower than that, we know something isn't running right and it's time to check the engine.
We don't drive the Saturn for the sake of the environment, though. The old truck makes up for what the Saturn saves as far as pollution goes. We drive it because we don't like paying gas taxes. They're way too high.
Want to save money on oil? Boycott taxes! Starve the Washington beast.
LOL! Me too!
Speaking of diesel...here on the Left Coast, in West Los Angeles, I just saw the weirdest thing. The premium gas at Unocal 76 was $4.09. The diesel was $3.09.
People are idiots.
How about supporting drilling for oil, building more refinerys?
OH GOD CAN’T DO THAT!
Let’s not buy gas on one day.
OH how easy and fun.
Idiots. Pure, plain, fools.
Fer sher. If you don't like how much gas costs don't drive as much. There was some woman on the forum (Yesterday?) complaining about the cost of gas and it turns out that she was shuttling her kids to various sports events - strictly optional behavior. I drive a 427 cu in v-8 that takes premium and love every minute of it. The cost of the gas just isn't all that important to me. For backup I have a 346 V-8 vehicle that I take on rainy days and if worse comes to worse an antique 1700 cc diesel that's good for fumigating joggers and bicyclists.
I probably have enough until tomorow since I have a short ways to the job i’m doing today but just to counter these nuts i’ll fill up this morning.
Great! We need gas and I hate waiting in line. Today it is then. Maybe I’ll treat “The Jelly Bean” to the nice gas station.
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