• This is a political forum that is non-biased/non-partisan and treats every person's position on topics equally. This debate forum is not aligned to any political party. In today's politics, many ideas are split between and even within all the political parties. Often we find ourselves agreeing on one platform but some topics break our mold. We are here to discuss them in a civil political debate. If this is your first visit to our political forums, be sure to check out the RULES. Registering for debate politics is necessary before posting. Register today to participate - it's free!

Demand Destruction

rickc

DP Veteran
Joined
Jul 30, 2018
Messages
9,347
Reaction score
5,416
Just what the oil companies want to know. How high can they raise prices before Americans change their behavior. The new normal.

$4 Gasoline Could Lead To Demand Destruction In The U.S.​

By Julianne Geiger - Mar 10, 2022, 7:30 PM CST
More than half of all Americans said they would change their driving habits or lifestyle if the cost of gasoline rose to $4 per gallon, new AAA survey data shows.
The survey, conducted last week when gasoline was “just” $3.50 per gallon, showed that two-thirds of Americans felt gasoline prices were already too high. Fifty-nine percent of those surveyed also suggested that they would change their driving habits or lifestyle if gasoline reached $4.
 
A temporary halt in the federal tax on gasoline would be nice. Add that to a state halt and most Americans would save about 45+ cents a gallon;

State gas taxes range from just under 10 cents to nearly 60 cents for a gallon of gas while the federal gasoline excise tax was 18.4 cents per gallon as of 2021.

Since it makes sense I do not expect to see this happen.
 
Just what the oil companies want to know. How high can they raise prices before Americans change their behavior. The new normal.

$4 Gasoline Could Lead To Demand Destruction In The U.S.​

By Julianne Geiger - Mar 10, 2022, 7:30 PM CST
More than half of all Americans said they would change their driving habits or lifestyle if the cost of gasoline rose to $4 per gallon, new AAA survey data shows.
The survey, conducted last week when gasoline was “just” $3.50 per gallon, showed that two-thirds of Americans felt gasoline prices were already too high. Fifty-nine percent of those surveyed also suggested that they would change their driving habits or lifestyle if gasoline reached $4.

Gasoline demand is considered inelastic in nature as it changes slowly and by small amounts in response to price changes. Not everyone can change their vehicle from a large gas guzzling SUV to a fuel efficient hybrid in a short period of time.

Watch for trucks and large SUVs to be sold for reduced prices in about 3 months
 
$4 gasoline? Lmao. I just filled up @ $5.40/gal. Yes, with $4 gas, I could change my driving habits.
 
$4 gasoline? Lmao. I just filled up @ $5.40/gal. Yes, with $4 gas, I could change my driving habits.
On the bright side higher gas prices means less money for smack and bullets.
 
Took me three tries to realize they meant "destruction of the demand for oil" and not "people will demand things be destroyed because they're mad" and I think it's time for a cup of coffee.
 
On the bright side higher gas prices means less money for smack and bullets.
I have plenty of bullets and don't do smack. You have a vivid imagination, as wrong as it is. Don't talk smack.
 
Gasoline demand is considered inelastic in nature as it changes slowly and by small amounts in response to price changes. Not everyone can change their vehicle from a large gas guzzling SUV to a fuel efficient hybrid in a short period of time.
Agreed.

Watch for trucks and large SUVs to be sold for reduced prices in about 3 months
Yeah, probably. Pretty sure the market responded that way during the mid-70's oil embargo.

I still recall my dad considering getting a couple of 55 gallon drums to keep some gas on hand, as well as thinking about buying a diesel VW Rabbit to stretch the fuel dollar. Demand for those cars was so high that there was a 6 or 8 months waiting list. If the market reacts similarly, you can expect a wait that long, or even longer, for EV cars.
 
The term "demand destruction" is about "killing the goose that lays the golden eggs".
In other words, prices reach a point where consumers say "screw it" and change their habits in order to buy and use less of something.
I refuse to continue supporting Netflix since they jacked the price up too high.
Their price jumps caused personal "demand destruction" for me.
 
Gasoline demand is considered inelastic in nature as it changes slowly and by small amounts in response to price changes. Not everyone can change their vehicle from a large gas guzzling SUV to a fuel efficient hybrid in a short period of time.

Watch for trucks and large SUVs to be sold for reduced prices in about 3 months

Last time I remember is dick and jr.'s invasion of Iraq. $150 a barrel oil.

People were buying more fuel efficient vehicles.

But soon after it passed the large SUV was king again
 
The term "demand destruction" is about "killing the goose that lays the golden eggs".
In other words, prices reach a point where consumers say "screw it" and change their habits in order to buy and use less of something.
I refuse to continue supporting Netflix since they jacked the price up too high.
Their price jumps caused personal "demand destruction" for me.

Yep

The oil companies want to know where that price is. They want all the market will bear. Goes to $5.00 and drops back to $3.50 and everybody is happy
 
Last time I remember is dick and jr.'s invasion of Iraq. $150 a barrel oil.

People were buying more fuel efficient vehicles.

But soon after it passed the large SUV was king again

There may be a buying opportunity in a few months for larger trucks and SUVs if people want to chance that gas prices will drop in a year or so
 
A temporary halt in the federal tax on gasoline would be nice. Add that to a state halt and most Americans would save about 45+ cents a gallon;

State gas taxes range from just under 10 cents to nearly 60 cents for a gallon of gas while the federal gasoline excise tax was 18.4 cents per gallon as of 2021.

Since it makes sense I do not expect to see this happen.

Seems this halting the gas tax (Fed and State) is just kicking the can down the road. The lost revenue would need to be made up at some point in time for those programs the tax helps fund.

Our infrastructure is in need of repair in many areas.
 
Just what the oil companies want to know. How high can they raise prices before Americans change their behavior. The new normal.

$4 Gasoline Could Lead To Demand Destruction In The U.S.​

By Julianne Geiger - Mar 10, 2022, 7:30 PM CST
More than half of all Americans said they would change their driving habits or lifestyle if the cost of gasoline rose to $4 per gallon, new AAA survey data shows.
The survey, conducted last week when gasoline was “just” $3.50 per gallon, showed that two-thirds of Americans felt gasoline prices were already too high. Fifty-nine percent of those surveyed also suggested that they would change their driving habits or lifestyle if gasoline reached $4.

Hi, rickc!

The usual cautionary note should be appended. What people say may differ more than somewhat from what they will actually do.

Regards, stay safe 'n well 'n remember the Big 5.
 
Hi, rickc!

The usual cautionary note should be appended. What people say may differ more than somewhat from what they will actually do.

Regards, stay safe 'n well 'n remember the Big 5.

I will have to agree. They may say they will change but most likely they will just get used to the higher price. That is what the oil companies are relying on. They will stop just short of that destruction price.

I drive a truck. Need it for work and to pull my camper.

I can't ever see myself driving anything else.

When I was in high school gas was $0.20 a gallon. Along came the Arab oil embargo and gas lines if I remember correctly gas shot up to $0.32 a gallon. Everyone was bitching.

Now at the end of the Clinton years, just before dick and jr took over I remember paying $0.99 a gallon. Just a few years later a $100 bill wouldn't fill my truck up.

This has been going on a long time. Fuel is something we can't do without. Too bad there isn't a viable alternative after all these years.
 
I will have to agree. They may say they will change but most likely they will just get used to the higher price. That is what the oil companies are relying on. They will stop just short of that destruction price.

I drive a truck. Need it for work and to pull my camper.

I can't ever see myself driving anything else.

When I was in high school gas was $0.20 a gallon. Along came the Arab oil embargo and gas lines if I remember correctly gas shot up to $0.32 a gallon. Everyone was bitching.

Now at the end of the Clinton years, just before dick and jr took over I remember paying $0.99 a gallon. Just a few years later a $100 bill wouldn't fill my truck up.

This has been going on a long time. Fuel is something we can't do without. Too bad there isn't a viable alternative after all these years.
I think you are also pointing out how badly the US dollar has been devalued by the political elites.
 
Just what the oil companies want to know. How high can they raise prices before Americans change their behavior. The new normal.

$4 Gasoline Could Lead To Demand Destruction In The U.S.​

By Julianne Geiger - Mar 10, 2022, 7:30 PM CST
More than half of all Americans said they would change their driving habits or lifestyle if the cost of gasoline rose to $4 per gallon, new AAA survey data shows.
The survey, conducted last week when gasoline was “just” $3.50 per gallon, showed that two-thirds of Americans felt gasoline prices were already too high. Fifty-nine percent of those surveyed also suggested that they would change their driving habits or lifestyle if gasoline reached $4.



I changed the vehicle I drive over 2 decades ago in 2001 when I bought my first hybrid car.

The one I own now is my fourth one.

I made the decision in 2001 to never buy a regular gas vehicle again and I haven't.

I've been driving by the gas stations laughing at people wasting their money needlessly on gas for over two decades.

The price hikes in the bush boy years didn't harm my budget. The gas hikes now won't do much to my budget.

The next vehicle I buy will be fully electric so I will never have to stop to buy gas again.

Americans can destroy the gas industry now. We have the technology and vehicles.

I wish more Americans would make the choice I made over two decades ago.

We can take all their power from them.

I wish more Americans would realize this and make the change.
 
I will have to agree. They may say they will change but most likely they will just get used to the higher price. That is what the oil companies are relying on. They will stop just short of that destruction price.

I drive a truck. Need it for work and to pull my camper.

I can't ever see myself driving anything else.

When I was in high school gas was $0.20 a gallon. Along came the Arab oil embargo and gas lines if I remember correctly gas shot up to $0.32 a gallon. Everyone was bitching.

Now at the end of the Clinton years, just before dick and jr took over I remember paying $0.99 a gallon. Just a few years later a $100 bill wouldn't fill my truck up.

This has been going on a long time. Fuel is something we can't do without. Too bad there isn't a viable alternative after all these years.

Hi again.

There's an old story that, one year many years ago, two car companies engaged in consumer research to decide what type of car to sell in the coming year.

One company asked, "What kind of car will you buy next year?"
The other company asked, "What kind of car will your neighbor buy next year?"

The first company almost went out of business. Their plain pipe rack, 4 cylinder, underpowered car just didn't sell. The other company had trouble keeping up with the orders. Their tail-finned, two-toned chromed big bumper models with huge V-8 turbo engines sold like hot cakes!

Like I said . . .

Regards, and best wishes to you and yours.
 
Just what the oil companies want to know. How high can they raise prices before Americans change their behavior. The new normal.

$4 Gasoline Could Lead To Demand Destruction In The U.S.​

By Julianne Geiger - Mar 10, 2022, 7:30 PM CST
More than half of all Americans said they would change their driving habits or lifestyle if the cost of gasoline rose to $4 per gallon, new AAA survey data shows.
The survey, conducted last week when gasoline was “just” $3.50 per gallon, showed that two-thirds of Americans felt gasoline prices were already too high. Fifty-nine percent of those surveyed also suggested that they would change their driving habits or lifestyle if gasoline reached $4.

Simple economics apparently still isn't simple enough for some.
 
Simple economics apparently still isn't simple enough for some.
Not only economics. The reality is that constraining the resource that runs your economic doesn't lead to a functioning economy, no matter how much the desired utopian future state is believed in. Reality doesn't work by believing in Rainbows and Unicorns.
 
Back
Top Bottom