Postal rates is a good example. As postage has gone up we have found ways around paying postage. E-mail, Facebook, e-cards, e-bills, and e-payments are all examples of technology providing opportunity to reduce the need for stamps. As postage rates rise, the use of all these technologies has increased as people find ways to live without stamps. 10 years ago I used 15 to 20 stamps a month, many to send in bill payments. Now I use about 20 stamps a year. I pay all bills using the e-payment system provided by my bank, e-cards, and send family pics by email or facebook.
Fuel prices will drive the same behavior. As prices rise and more technology provides more options to burning gas and oil people will take advantage of them. Higher prices drives more adaptive behavior sooner. America is behind Europe in the adaptive process because prices across the pond have been higher longer. We don’t like change and rail against it, but high fuel prices are the new reality. Sure the gas prices will go down some when the current short term crisis passes, but the march to higher prices continues. When gas prices go down, $3.00 per gallon will seem like a bargain, so prices won’t go down to pre-crisis levels again.
What I am sure is that the cost of postage is announced and planned for regardless of it’s affects. Some difference than seeing a $.__(name your number) a gallon increase between going to work and coming home.
I doubt you see a sudden increase of 25% on books because of planned shipping cost. It’s the volatility of the price of a commodity that has such a dramatic effect on our economy. Everyone knows (or should) about postal increases. And guess what, there is now, competition in shipping options. There is none for oil as none of the oil companies directly compete with each other and there is no alternative for 99% of the our transportation needs.
“In your face” is kind. “Sticking it up yours” is more like it.
Postal rates/shipping is not a good analogy as there is so much competition. Use of the Internet was not intended to offset postal rates, it was a by product. Oil prices go up, are we in the Northeast going to run out and sell our oil furnace or take a jet plane that doesn’t burn petro. or order goods shipped by sailing vessel. You get the point. WE are a captive consumer…in oil use, not in postage options. Prices across the pond as you say are higher because of the benefits they provide in tax revenue. Remove all your healthcare costs, and I guarantee you’ll be able to “afford” much higher gas prices, especially if your miles driven and trans portation needs are half what it is now.