Mover Mike

Driving around North and Northeast Portland, I'm seeing gasoline at $3.41. Today on The Oregonian's front page we have the story of the misery caused by high gas prices in For some, gas tank is half empty. In it we get stories of people making choices between food and gasoline or pills and gasoline. And once again we read about the effect of high gasoline prices on contractors and mowers of lawns.

I checked in on the chart of gasoline prices over the last two years and I wasn't surprised to see prices hit their peak in April of last year and stayed high through July before faling 50% to a bottom this past January. If history repeats expect high prices for the next three months, the driving vacation months.

The real point of The Oregonian article, it seems to me, is to generate sympathy for the poor inviting some form of government subsidy. Politicians will see the problems and want to resort to windfall profit taxes, wage and price controls and/or subsidies (robbing Peter to pay Paul). Higher prices should force changes in behavior. In the article

Shawn McLendon earns about $1,300 a month as a YWCA case manager who helps battered women find transitional housing. She drives all over Portland in a gas-guzzling 1977 Cadillac Concours, but she managed to stretch her money enough to cover expenses and a few extras when gas hovered around $2.50 a gallon.

Erik and Peder Elder are contractors who say they would lose credibility if they drove to a jobsite in a fuel conserving pickup, but they don't lose face bumming $6 for gas from a client. Shouldn't higher prices force them to make changes so they can do their jobs in a more efficient manner. Why should we have to subsidize their choices?

If those predicting an oil supply tightening are correct, we will see higher prices for all things involving oil. We as a society need to talk about ways to lessen the effects on our poor and elderly, but not at the expense of allowing the market to work.

Gasoline Mover Mike