Comment Re:SUVs (Score 1) 897
Of you don't have to be a psychic to know prices rise. It's called inflation, but you would have to have been psychic to know how fast they would have risen over the course of the past two years and to know at what point that was going to happen so you could suddenly have a boat load of fuel efficient vehicles hit the market at the exact time the market started demanding them. The point is that vehicle sales are market driven and here in the US gas was, and has now returned, to being dirt cheap. When you have dirt cheap gas and serious tax incentives to drive SUV's it doesn't take a genius to figure out there is going to be a serious market for SUV's. Had US auto makers ignored that market somebody else would have stepped in and done it. That's how free markets work. If there is a demand for something, somebody is going to fill it.
If the US government had a brain it would have been slowly raising gasoline taxes to curb usage over a period of several years starting about a year and a half after 9/11 (when the partially 9/11 induced recession hit). That would have eased consumers out of their bad habits. Instead the Bush Administration did nothing. You can't blame US car companies for building vehicles that consumers want to buy. It's basic supply and demand. It's the government's responsibility to either raise taxes to affect that market or to pass laws that force fuel efficiency on all vehicles sold or driven in the US. Time will tell if the US has learned it's lesson and I'm skeptical. Our government would be insane to raise taxes on fuel now that we're in the throws of a major recession but in about a year when this thing has subsided it would be insane not to announce that there will be national gas tax that will raise the cost of gasoline to $6.00 a gallon over the course of 5 or 6 years (with 100% of the revenue generated being put into research into alternative energy and upgrading our energy infrastructure). That will create the market for fuel efficient vehicles and lower fuel usage over time without the economic shock of the recent spike. $6.00 a gallon gas is a great incentive to decrease our dependence on oil and will create a serious demand for fuel efficient vehicles and vehicles powered by alternative sources but it's got to be done over time so consumers can prepare themselves for it.