Walk on the Wild Side

I agree with Felix that it makes a good First Order approximation, but I wish they had set an inner parameter with an Estimate where miles driven were reduced to 24,000 and Gas mileage had increased to 24.5 mpg. What bothers me is the fact that Transport miles seem to be on the increase, though I have not researched hard numbers. They are bound to start a decline soon, though, and World Demand for Oil is going to Dip, before it continues to expand. I cannot see miles driven to increase either in the Short-term or the Long-term; a bad sign for the Tourist trade, most evidently in the RV Parks (I imagine there will be a 14% reduction for the Year here, and double that in the upcoming Year). There is no Quick Fix for the current economic infrastructure, because the Profits Turnover is not there.

Arnold Kling may possess too optimistic an attitude to economic disaster. I was just drug away by Washing Machines and Dryers, so I almost lost my Thought; but the doubt on the economy can be found in the drop of hard Capital in Percentage terms to soft Capital, basically accounted as human resources and/or Intangibles. Simply put: soft Capital will not make a Profit, unless it has a sound foundation of hard Capital. Soft Capital is like unto a jackrabbit, while hard Capital is like the tortoise; this never more so than in the area of Profits. Hard Capital rests on solid Investment Contracts, with rigid Payment schedules and constant (will almost never lower) Overhead Costs in its use. Few rapid Turnover Profits can be ground from hard Capital; thereby ensuring there will be almost nil economic Profits. Finance flows to soft Capital, on the other hand, because of quick, temporary economic Profits can be achieved. This Practice eventually drains capitalization funds from hard Capital, and the foundation of the infrastructure erodes.

I don’t want to blame the Victim, I don’t want to take a Bermuda Vacation, I want to blame the Government. I am going to anger Everyone, and now propose a $1/gallon tax at the Gas Pump. I have did this before, but there is greater reason for it now. The Tax would flood the Treasury with Cash, at a time when it is getting very valuable to cancel Congressional action. The Tax would be almost a dead loss for the Oil companies, who could not maintain their Profits under the potential loss of Consumer Demand; they also will not reduce their Exploration, Development, and Drilling because they are going to need the new Wells. Consumers will not be able to reduce their Consumption in the Short-Term, without unloading their SUVs for more economical fuel models. By the way, don’t blame Me; the Devil made Me do it. lgl