Gas Price on a rise-Doe not matter, we just keep on taking.

Sorry Mr. Back but My account was unavailable during the past few days. Due the the blogger upgrading and some other issues with the password.

Here is a proof after I had a password reset...Before that, I was unable to log on.

Onto Chapter 4....

Oil Prices are constantly growing due the the high demands, the US statistics agency explains that the amount of inventory in gasoline and distillates are lower than ever. This is because of the fact that the oil reserves in Iran are not producing as much as full capacity as well as higher demands in recent months. China is also compeating for gas more so than ever because there are more car sales now, as much as 700 new vehicles sold each day in just one city alone. Prices have been as low as $59 US dollars a barrel, now they predict that it will rise to $62, in the near future, competition between the US and China will lead to even devestating prices at the New york Mercantile Exchange. An expert explains that in the next two weeks prices will hit as high as $65 dollars a barrel. This significant rise in price is due to the lack of inventory in the US. China being the second largest oil consumer in the world will not slow down in its consumption, in the long run is it expect that China will even become the worlds largest oil consumer.

http://www.canada.com/vancouversun/news/business/story.html?id=9a65031d-b3af-403d-a2f1-f6dcd548dd0d&k=57726&p=1

Personnal Reflections:

There should be more government involvement in the oil industry, things that the Government can do to keep inventories high and prices low. In my opinion, the Government should limit the amount of gas allowed per vehicle per a set time period. This way we can restrict people who use more gas monthly than others, each vehicle should be filled with the same amount of gas as any others. This would push people into buying efficient cars, as well as reducing the amount of yearly consumption by our country. This is a benificial way to reduce green house gas and keep our inventories high.

I believe this is a good way because the Chinese are using this technique, as the demand in China increases, the government stepped in to limit the amount of gas per vehicle. They stepped in at a time when there was gas shortages in that city.

So by doing that, people would look towards more efficient cars and that would reduce CO2 emmisions.

The fact is, people wont care if the gas prices rose a few dollars more, they just keep on taking it. Because this resource is scarce, they are willing to pay more to get it. Just like you would with diamonds. So even if gas prices are predicted to rise, it won't matter unless the government steps in and get involved in controlling the public consumption.

Chapter3

Lets talk about the government, I think healthcare and public transportation should be owned by the government. This is because most private owned businesses run better, and more efficiently. My belief is that because there are more crown corporations = better over all economy.
According the link below, Alberta is attempting to privatize health care, the total amount spent each year per person on healthcare is about $4,400 canadian dollars. If alcoholics and drugies pay a visit to the hospital once ever week, wouldnt they have already spent the limit? Thus I believe that hospitals would be much more efficient running privatly, there would be no waiting times. With private health care, people will not abuse the system. Because everytime they visit the service, they have to pay for it. Thus it is unlikely that they will repeat their habit. Such as drinking alcohol.



The downside to privatizing healtcare is that, people won't ocasionally go in for checkups, which means that early prevention would be avoided.

We all pay for tax, if we arn't visiting the hospital as often as others, then there is a certain amount of case that we did not use. This amount is then allocated to others who abuse the system, making this public system inefficient.

This is My idea of the Ideal Health care system:

We should go with the two tier system. I think you are unsure of what is really right. How about my opinion...take a look.

We Have both Private and Public systems together. We use a new type of medical card, this new cards is an ID and could be accessed by both systems. Each year The government splits Bling into the two systems. And each year, your medicare card is renewed with credits that you can use. For example; I have really high income, I get taxed alot. So my medicare card gives me $10,000 credits for use in private or public systems of my choice! Now if you were the average Joe, and you made average....then you would get something like $4,000 dollars of credit.

How much credits do you get each Year? Depends on that Annual Income TAX form you fill out each Year. =D

Then....If say I was all clean and healty for this whole year, I may wish to go to the bank during a specified period (like 2 weeks) before my credits Renews....and at the bank I can credit all my $10,000 dollars to my bank account. This could be a way of....tax relief...or something. Its just good to have more money to spend. Its bad if you leave it in your bank Account....


http://www.cbc.ca/news/background/healthcare/public_vs_private.html

The Telsa Car

This link refers to a new mode of tranportation :

http://autos.msn.com/as/minishow/article.aspx?contentID=4024172&s=Pebble2006

It talks about how the New telsa car from Telsa Motors is the new generation of Automobiles. They say that this car can travel up to 130 mph as it is still a prototype. But they say its got 248 horsepower and alot of torque. The difference between this car and other typical sports cars is that this car has no fuel consumption. Which is totally electric powered. This means that transmission, gear box, engine, muffler, gas tank and all that weight is gone. Making this car fast and light. Telsa Motors is planing to make this car everyones car. The starting budget for this car is $100,000 USD. Already 100 of these cars are sold, and so the real market for these gasless cars begins.

This new car can go for 250 miles between charges, with about 6,800 AA size Lithium-Ion batters to power this beast.


This article relates both chapter 1 and 2 because I think that with the introduction of a new car like this, will strongly offset the economy in later years. Cars like this will sell when produced in quantity, and because when there is quantity, prices will decrease. This decrease in price will further increase demand for this type of cars.

The economics of gas heavilly relies on the consumers, people who drive to school everyday, drives to work everyday, and people who loves driving hummers and v12's. With these people, gas is constantly demanded and results in the expensive gas price we have today. But in later years, when Telsa cars are produced in large quantity.

People are going to be switching over to renewable energies like electricity. When half the population are driving the new Telsa cars, gas prices will drop because not many people will be consuming it. As well as car sales will decline, and results in the shutdown of many auto malls and factories. There will also be few old gas car dealers who are selling cars for as little as thounsands of dollars because theres simply too many out there that people don't want.

At this point, the workers at Alberta oil sands, oil rigs in the tropical areas, and bitumen extraction zones in Trinidad, and last but not least American companies in the middle east will all be laid off. Because of the fact that its no longer a profitable thing anymore, people would start saying "Gas is so last year".

Cheaper new cars.

LINK: http://autos.msn.com/advice/article.aspx?contentid=4024279

New Ford Cars selling not so well. Due to gas prices and high taxes. Car dealers have no choice but to lower the cost of new cars. This means that new cars can be sold for as little as $25,000 USD.

Im talking about a full size SUV for that little amount. So what do you think? Does decreasing prices seen reasonable in order to sell cars. What happens if the sold price continues to decline does the profit margin decrease as well? of course! If gas prices continue to increase and car prices continue to decrease, there will be a point when the profit margin is so little that its not worth producing cars anymore. In fact, if the cost of production is more than that of the profit. I think that car makers will begin to shut down. And if this theory works, it would be a way for the government to close down manufacturers and initiate new initiatives for creating environmentally friendly cars.

This link mainly talks about things we talked about in class of chapter 2, where the demand of a product reaches all time high. Everyone wants gas, and for as little as possible. But because resource is scarce, hence "scarcity", prices for those resource will rise.

The link also talks about how these new features are added to make the cars sell better. Does this technique work from an economical stand point? It does, because people are attracted to the exclusive features and thus are urged to buy those luxury vehicles. But the down side is the expenses put into gasing it up.

If people didn't want to go on vacations and get rides to school every morning, then gas prices will drop. As we learned, when the supply is limited, or is controled, the prices for the supply will rise if demand increases. But if the supply of gas is not controled where the public can exploit all the oil reserves, then the price of gas would drop, because supply has increased. Economics is all about the balance of things. Like newtons law, for every action, there is an equal and opposite reaction. The price of gas for the economy is the equalibrium balance between quantity and price.

Junner.Z