In the longer run people will begin to adapt and minimize the impact of high gasoline costs.  Collectively they'll continue to downsize vehicles, lean more towards diesel models, get smarter about how and when they drive, etc.

I'm desperately hoping that as part of this process, people start demanding (and moving to) mixed-use communities where you don't need cars to buy groceries, go to the post office, or run other errands. If we demand them, undoubtedly developers will start to build them.


T E L E C O M M U T I N G

Only our psychology prevents us from taking better advantage of this practically free, immediately available, productivity enhancing method of demand destruction.

People who use and like telecommuting will ask, more and more, to be able to use it as fuel prices increase.  We need to make sure that public policy encourages their managers to allow them to use it liberally, at least until managers understand the benefits and learn to get over their personal antipathy.