Energy Costs Change Everything
I suppose I have massive schadenfreude feeling around hardships being felt over higher energy costs. I have always felt that energy ought to have been taxed to discourage the grossly irresponsible use that has dominated North American culture.
Well, it appears that low energy costs have had more unrealised costs that most of us would imagine. Yves has a post about how high energy costs meant that business did not have to concern themselves about transport cost of good and were easily able to go for fewer suppliers offering the best price. Now it seems more suppliers located closer to where the good would actually be consumed is the new business plan and companies are restructuring to reduce business transportation costs.
So, over the longer term these kinds of business changes will reduce energy consumption.
Just think, if energy had been taxed to encourage more responsible energy usage not only would the deficit be smaller, but more jobs would have remained at home rather than being exported to China.
And being fiscally responsible in the first place would not have hurt really, people would never have made the grossly irresponsible energy choices in the first place.