ISSUE 1
i've heard that gas prices are slowly decreasing
although not sure if this is a long term trend
but some economists believe this is actually a bad thing
afterall if the market is going to be innovative and is forced to find alternatives to oil there has to be a demand for alternatives
if gas prices continue to fall then the market will not be forced to look for alternatives quickly b/c demand for it will be assuaged
ISSUE 2
I've heard from a supplier for major car maunfacturers that we have roughly 40 years left of oil (estimates vary of course)
not only that but in addition oil or more specifically petroleum is imbedded in many other commodities i.e. plastic
that means that once we run out of oil not only gas but many other commodities will cease to exist in their current form
i sincerely hope that the market and all of its positive facets will be able to prepare itself or at least endure the exhuastion of petroleum
everything from practically all forms of transportation to housing to anything made with plastic will be adversely affected
ISSUE 3
One of the reasons why oil is now so expensive is b/c of the expanding middle class in India and China. Afterall the more demand for a commodity the higher the price may go up
Now when we talk about India and China we are talking about a middle class that could easily out number the whole U.S.A. population
This is a bad thing for the U.S. if you enjoy cheap goods. Everything from ice cream to oil will substantially go up in price.
This could be a long term trend - the market will not cheapen goods via efficiency/mass production/innovation...
That's why the next presidential administration is so important - major decisions will have to be made and major changes too
ISSUE 4
I don't believe the market economy, during its 300 year existence, has been threatened by the exhuastion of one of its key resources if not its most important
Oil has always been in existences during the life of the market economy
The Depression was caused mainly in part by over speculation and then a scare which drove many to no longer invest in future ventures/take their money out of banks/buy their stocks back...
But in the in future it will be a different case - the exhuastion of a real resource that the market has been so dependent on for over a hundred years
Unfortunately the last two great depressions (1870s and 1930s)
conincided with mass social social turmoil (mass riots and civilian casualties in the U.S. and of course WWII respectively)
hopefully we can avoid that this time around