IT'S UP TO US

Let's not labor under the delusion that government is going to create jobs for us. Neither Democrats nor Republicans have that ability--neither separately nor together.

It's up to you and me to do the creating and the sooner we all realize that fact, the sooner the unemployment rate will decrease and the sooner our economy will again be robust.

Innovation is the key to accomplish the above--not the government, not wall street and not big business. The all subscribe to the physics theory that a body in motion has a tendency to stay in motion. And that means the status quo.

All of us must encourage innovation because our livelihood depends upon it.

Personally, I believe that the ability to think out of the box--to create new concepts and make them productive, is best achieved when people from different disciplines come together in a special place--a place designed to foster innovation and entrepreneurship. And from these seemingly unconnected ideas, new concepts emerge. Change takes place and our country moves forward.

Think about it. Because thinking begins the birth of innovation.

LOOKING AT THE BRIGHT SIDE-FINAL CHAPTER

This will be my final in-depth comment on the price of gasoline and it's impact on how we conduct our daily lives in the future.

The most important statement I can make concerning the above is: STOP POLITICIZING THE COST OF OIL.

Before enumerating the basic facts, I need to comment on an article in today's New York Times where a corporate big-wig stated that fracking oil from the ground would increase our oil capacity by 25%. What he forgot to mention is that it would violate our ground water system.

For those of you who would prefer filling their gas tanks to dying of thirst, I commend you.

For the rest of us, remember that the synonym

for fracking is fricking. Some combination--Frick and Frack. So, while the ground gets fracked, we the people get fricked.

Now for some, but not all, of the basic facts:

1. Oil is a finite commodity. If you're over sixty, perhaps you will still to be able to fill your tank until the day you die.

2. The price of gasoline is subject to the law of supply and demand. Less supply leads to higher prices. More demand leads to higher prices.

3. Americans seem to think we are the only ones that have automobiles. We're not. The rest of the world uses gasoline and, unfortunately for us, emerging nations such as China and India have populations that are buying more cars and therefore need more gas. More gasoline for them, higher goes the price.

4. Has anyone noticed that as the price of gasoline fluctuates, it never falls below its last low and no one can predict how high the next high will be.

5. My prediction: Gasoline will never fall below its last low. Gasoline will rise well above the $4 mark and within the next two years will hit a high of $6 a gallon. (If coffee can double from $3 a pound to $6 a pound when coffee and gasoline at one time were both $3 for their respective weights, why not gasoline?

6.For all of the above reasons plus many more, the rising price of gasoline will be the tipping point to major changes in our lifestyle.

I intend to be proactive. How about you?

LOOKING AT THE BRIGHT SIDE-CHAPTER TWO

Why am I belaboring the point of high gasoline prices? The answer is that it is the tipping point which is leading us to make major changes in the way we live our lives. In fact according to one of the recent polls, 40% of Americans have experienced major changes in their ability to maintain their standard of living because gas is near, at or above $4.00 per gallon. If you think $4 a gallon is debilitating, what happens when the price rises to $6 per gallon? And it will within the next decade. Foreseeing the coming tipping point is akin to the captain of the Titanic foreseeing that iceberg in his path. He didn't avoid his problem, but we can avoid ours.

Because, by recognizing what will inevitably happen, we can begin the process of creating meaningful jobs, affordable universal health care, returning our world to green and nurturing innovation and the entrepreneurial spirit.

Chapter Three will be the last in discussing the price of gasoline. Future blogs will focus on jobs, health care, greening the world and innovation.

LOOKING AT THE BRIGHT SIDE

Has anyone noticed that the fluctuating prices of gasoline is a lot like a manic-depressive person?

Fortunately manic-depression is treatable with medication. The rising price of gasoline is not!

However, like manic-depression, gasoline never returns to it's historic lows and one never knows when the highs will be reached.

So, when gas goes down a few cents and stays there for a while, we as a people develop a comfort zone of passive acceptance. The next rise begins another vicious cycle. New highs are reached, and new lows follow--though never as low as the last cycle. Once again, passivity sets in. And the next cycle begins.

For those who don't believe in cycles, try out this one: Back in the 70's when gas lines wrapped around the block, the advent of the four cyclinder car rose like a shining light. Fuel efficient foreign cars were more desireable than ocean cruises. The gas-guzzling American muscle cars became our dinosaurs --extinct.

Then we became accustomed to the new gasoline reality and went for six cyclinder cars, then turboed six cyclinders.

Of course, we all know what came next--mini-vans, SUV's and back again to 8 cyclinders.

We are at the apex of the current cycle--SUV's are being traded in for hybrids, 4 cyclinders and anything that smells of fuel-efficiency.

These cycles will only stop when we can no longer extract oil from its scource. Remember, folks only a limited number of dinosaurs became extinct. I know it took a million years for it to happen, but, because we are the ultimate consumers, we've used most of it up in about one hundred years. Who in his right mind believes that oil companies will still be extracting oil one hundred years from now?

There is a bright side to this cyclical phenomena.

But that's for the next blog.

A FAST APPROACH TIPPING POINT

What do the following have in common? The high cost of gasoline, jobs, health care, climate change, and entrepreneurial innovation.

The cost of gasoline has a direct effect on jobs, health care, climate change and entrepreneurial innovation.

Please don't think that the price of gas is going to decrease significantly. No doubt that prices will fluctuate, but they will inevitably keep going up and up. The reason is simple--supply and demand. Fossil fuel is a finite quantity. Most people don't realize that we've used up almost two million years of fossil fuel production in less than one hundred years.

Most people don't realize that getting oil out of the ground becomes more and more expensive because there is less of it.

Most Americans don't consider that the rest of the world uses gasoline and that emerging economies such as China, India and Pakistan will require more oil as their economies flourish.

Statistically, there are 750 cars per 1000 Americans. In China there are 4 cars per 1000 Chinese. What happens when that number increases to 10 cars per 1000, 100 cars per 1000, 400 cars per one thousand?

The demand for gasoline will force the supply price onward and upward.

How will we react when the price of gasoline averages $6.00 a gallon-$8.00 a gallon-$10.00 a gallon?

Of course, our way of life will change drastically. Do we wait and let events overtake us or do we become proactive and prepare for the day when change occurs?

The rising price of gasoline at the pump will shortly reach that tipping point--it could be $4.50 a gallon, it could be $5.00 a gallon. It definitely will occur at $6.00 a gallon.

For those of us who will take a proactive approach, while the issues are complex, there are steps that can be taken immediately.

Look for my solutions in coming blogs.

WHAT DO I DO NOW?

Have you noticed that a day doesn't go by that there isn't a news flash about the rising price of gasoline. Today, the average price of gasoline is over $3.82--higher in New York and California, of course. It is 30 cents higher than a month ago and $1 higher than a year ago. In fact, the price of gasoline is up 20% this year and keeps on climbing. Of course, we all feel its effects. I read where this couple in New Jersey who own a Toyota Prius, still have to cut back on their travel and have stopped their club workout memberships in order to save money. (She's an attorney, by the way.) The point that I'm trying to make is that the majority of us are reacting rather than being proactive. Why? Because we feel that the price of gas will decline to normal levels? They won't. Oh, the price will fluctuate, but the reality is that oil is a finite product and it's end is now in sight. Compare that with the sun or wind, both sources of energy that have no end. All of us need to rethink our priorities and start being proactive is preparing for a future without a infinite supply of gasoline. Think hard about it.

LATEST NEWS

Heard on MSNBC this morning: Gas prices at the pump have increased over 6% in the month and over 28% from a year ago. In addition, food prices have doubled since this time last year. How are these changes affecting you? I really would like to know. I mentioned in a past blog that I personally have decided to ride my bicycle whenever I need something within a 15 mile radius that doesn't weigh more than 50lbs. I have a dear friend who needs her automobile to conduct her daily business. Unfortunately, her company reimburses her mileage based on pre-1990 prices. So, while a lot of us are cutting back on short trips and vacation trips, those who need to use their cars for business purposes are finding that rising prices are forcing them to reconsider their line of work. The combination of transportation and food costs are forcing personal choices between poor and really bad. I really would appreciate your feedback. There are good answers out there. What are yours?