Gordon pointed out the other day that oil prices have incentivized him to bike to work. Although I am happy for Gordon and his new workout routine, I know that the price of oil is a component of almost all goods and services and cannot be avoided by boycotting the gas pump. Case in point: my new couch.
When we moved from Milwaukee to Champaign, we knew that we would have two living areas instead of one, so we splurged on a new (drumroll, please) sectional sofa. A certain well-known, high end store told us that they were moving to an aspirational regime of delivering furniture within 4 weeks of ordering. We ordered the sofa on May 25. It arrived today.
The reason for the 5 week delay from the aspirational goal? Oil prices. The warehouse halted weekly deliveries and instead moved to a "deliver when the truck is full" system. However, I am not bitter because the couch is beautiful and perfect. And on this occasion, I cheered to read "Old Testament Parenting," via Todd Zywicki:
Of the beasts of the field, and of the fishes of the sea, and of all foods that are acceptable in my sight you may eat, but not in the living room.
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1. Posted by Osman on August 9, 2006 @ 16:06 | Permalink
I think the hoopla over oil prices causing our economy to grind to a halt is massively overblown. Transportation costs will negatively impact some products and services while others will benefit.
Ok, so your couch was delayed a couple of weeks. Others might choose to not buy the couch at all, or perhaps buy one that wasn't manufactured at or shipped from great distances.
On a personal note, I'm with Gordon. Higher prices at the pump have encouraged me to hop on my bike much more than I might otherwise. Having a bike trailer also makes it easy to tow those awkward loads.
2. Posted by D. Daniel Sokol on August 9, 2006 @ 21:28 | Permalink
Let us not forget the others effects of higher fuel prices. These drive up manufacturing prices both directly and indirectly. Oil is used in many manufacturing processes. I suspect that this may include in the construction of your sofa. Indirectly, there are additional costs for the price of your sofa based on the increased cost of electricity.
On Gordon's biking to work, a more direct route might be for him to kayak across the lake from his house to the office. There is a dock a block away from the law school building.
3. Posted by Gordon Smith on August 9, 2006 @ 21:32 | Permalink
I can see the headline now: "UW Law Professor Dies in Freak Kayaking Accident"
4. Posted by Douglas Dixon on August 10, 2006 @ 8:49 | Permalink
I may be one of the few consumers to have actully benefited from the increase in oil prices. My wife and I purchased a brand new 2005 Honda Civic Hybrid in June 2005. We paid approximately $18,000 for the car, plus tax, title, license, and a $1500 extended warranty. The purchase was occassioned by our anticipated long commute during our year in LA, and we always planned on selling the car before we left LA. Yesterday, we sold the car for $21,000. The KBB listed the car between $20,500 (good condition) and $22,000 (excellent condition). Although we got a great deal on the car when we purchased it (thank you Professor Menkel-Meadow for the great negotiations class in law school), due to the high oil prices, the car actually appreciated in value. Can that really happen? Thus, after factoring in tax (which was fully refunded to us due to a tax law in DC), title, license, and the extended warranty, we drove a brand new car for a year for free. Add to that the $2,000 deduction on our 2005 tax return for the purchase of a hybrid and we made out quite well. This was something we never anticipated.
5. Posted by Gordon Smith on August 10, 2006 @ 9:41 | Permalink
Hi Doug! That is a great story. Of course, I declined to buy a hybrid last fall. What an idiot.
6. Posted by Beth Young on August 10, 2006 @ 18:27 | Permalink
Gordon, you shouldn't forget about the possibility of cross-country skiing across the lake once it freezes!
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