Mental Recession indeed

Phil Graham (R- Texas) said yesterday that we are in a "mental recession". A mental recession, obviously Mr. Graham is so affluent that he does not worry about the price of gas. His mortgage is not outstanding, and his life expenses have not been hurt by the economy. I have friends with well paying jobs who are having to make major life changes due simply to the price of gas.

I too am having to reevaluate things due to the price of gas, people are having to choose between groceries and gas. If they fill up their car, they cannot get enough groceries to last through the week. Then when they get to the grocery store, they see the price of food escalating at an alarming rate! When will it stop?

Quite simply gas will not come down, it may stabilize, but it will not come down as long as the oil companies have lobbyists in Washington. It is basic economics 101. Charge what the market allows. Raise prices until you reach rebellion then leave it there until they get used to it. Then raise it slowly. Sure supply and demand have a play in it, with the opening of China and India to the global oil markets, it has played a toll. But all of this happened with Katrina and Wilma. Immediately following these two storms Gas increased to $3.00 a gallon and no one blinked, it dipped some after the outcry, but it has steadily increased since then. The Chinese and Indian markets were already open, so the supply and demand argument is moot to me. It is simple rebellion and price.

With the record profits in the oil companies, those with the control have not nor ever will be effected by the price, therefore they will not lower the prices. We as consumers must make them hurt in their wallets, buying more fuel efficient cars, stopping our travel and hitting the tourism markets will effect it some, but not for years to come. Face it, the $4.00 gas is here to stay. And soon it will be $5.00 - that is where I predict we will see real rebellion from consumers. and this will lead to inflation, inflated salaries to compensate the price of gas, and so on. Personally I do not see an end, I like others are looking to alternative fuels, better mileage cars, and the like, I am seeing it in my industry, customers are ordering less due to the fuel surcharges from shippers, delivery charges and so on.

What is the answer? I am not sure, and while as a whole I am opposed to government regulation, perhaps we should look at that option for the oil companies. Government controlled Oil? I am not sure that is the option either.

Alternative fuels? A logistical nightmare. How will we get every crossroads in America to convert to hydrogen or natural gas? how will every Tom Dick and Harry gas station get converted? Will the tax payers get the bill for this? Or will we force out all of the small privately owned stations.

Mopeds, scooters and motorcycle sales have risen for fuel economy, now we can expect automobile (motorcycles, moped) insurance to rise to meet the claims for under experienced drivers and their accidents. - I live a mere two miles from my office, and I drive my car here everyday - it will soon stop as I too am looking into a scooter or motorcycle to save gas. But how will I transport my five kids on a motorcycle? The van is here to stay, but only for family outings.

A mental recession indeed. McCain may have just lost the election based on that one comment. Mr. Graham should have to walk everywhere he goes and buy his own groceries if he really believe this.