Regarding demand destruction:

As I drive around the country Ive noticed several things that make me wonder about the existence and breakdown of demand destruction.

There seems to be incredible infrastructure being built, highways repaired, new pipelines being put in, etc. At the same time, the average american appears to be tightening his/her belt.  People are driving, but being extremely tight in their discretionary purchases (at least anecdotally). I see the more 'upscale' restaurant parking lots off the highways (Cracker Barrel, TGIFs, Chilis, etc) relatively empty while the cheaper fast food places are full (Burger King, McDonalds, etc).

Is it possible that industry is using more energy (because of inflation, and lower net energy available they have to spend more energy, and therefore dollars on just keeping up) and at the same time the non-industrial use is dropping due to higher prices?  We could be witnessing true demand destruction as theory predicts, but this drop in demand is being more than offset by higher energetic fixed costs of corporations and industry, making demand overall quite robust in the face of higher prices?

I will research some stats on the

What part of the country are you in?
There is no evidence of slowdown here in NE Atlanta. People in their big SUVs still barreling long on GA-400 at 80mph+, restaurants still packed every night with waiting, and they are still buying the 3500sq ft plus mcmansions.
I think there has been some demand destruction among the poorest americans.  I've started to see poor men in my town riding bikes in the morning.  These are clearly men biking to work based on their dress, not biking for exercise.  

Also I frequently hear from my public assistance patients that they are trying to plan all of their medical tests and doctor visits on the same day so they only have to come to town once a month.  These are the poorest of the poor.  But if the lowest 5% reduce their driving by 20%, the overall effect is a 1% reduction in the rate of growth.  

Among middle to upper income people, there hasn't been any demand destruction around here. Everyone in Ohio who can afford it is still taking their annual beach vacation to the Carolinas.

One possibility at least as far as roads go is the overall financial situation that various states found themselves in over the past few years. Following the 2001 recession, many states faced extremely tight budgets as revenues decreased (or at least growth slowed drastically) but mandatory spending programs (eg, education and Medicaid) continued to grow rapidly. Revenues began to recover after a couple years, and there was a backlog of deferred projects, which are now being addressed.

Colorado is a particularly acute case. The recession hit harder than it did in most states, and the TABOR restrictions kept revenues from rebounding when the economy began to pick up. Some TABOR relief was granted in last November's election, allowing the state to roll back some of the budget cuts that had affected road construction. There seems to be significantly more construction here, on bridges in particular, than in the past few years.

sasquatch-

Your observations are very close to what I've seen as well.  Although I have to say my impression is that commercial and retail development is overwhelming any real infrastructure improvements in my part of NY.  The bridges and roads etc are overhauled at a snails pace but when it comes to throwing together yet another strip plaza, box store, or restaurant pad... well those go up in very short order.

I drive by these projects and each day shake my head more frequently - and I just keep thinking that it's all about being blissfully unaware.  I can't for the life of me figure out how all these restaurants and stores - very few of which sell anything very original- make it.  Who is shopping and dining at these places when there is such an overwhelming number of choices ?

I know that this isn't any kind of revelation for anyone at TOD but I continue to be ever more amazed at the complete disconnect with reality out there.  I just keep thinking as I see these projects start, progress, and be completed only to have others take their place - what a waste of energy - all of this has no future - we need to be expending this energy on something useful for the future and this is most definitely not it.

Ahhh...isn't consumerism great!

It's the circle of growth.

Rampant comsumerism -> Obscenely Massive Piles of Debt -> Irrational Monetary Growth (FED/M3) -> and back to rampant consumerism.

And the circle keeps on rolling.  Build more, eat more, spend more, burn more...wait...what do you mean there is no more!?

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It's all about population!

To quote Catskill
"I just keep thinking as I see these projects start, progress, and be completed only to have others take their place - what a waste of energy - all of this has no future - we need to be expending this energy on something useful for the future and this is most definitely not it."

ummm, there's the rub isn't it?  People still have to live and plan their lives.  They need houses, food, jobs, and as long as they still have cars and trucks, highways and roads.  If building what the American people need to live their lives is "not it" as far as useful goes, then we have to replace it with something that is "it"?

What would that be?  Getting people to plan for a different future relies on an answer to that question.  Right now, if you put 5 very "energy depletion" aware people in a room, and tried to get them to agree on even a short set of forward otions, my bet is that you would leave the room with at least 5 wildly differing sets of recommendations.

Roger Conner  known to you as ThatsItImout

Where I am in Central Kentucky is baffling beyond words.  In a state well known for decades of lack of development, all of a sudden, everybody is building.

In Hardin County, we used to be surprised to see a neighborhood being built that was ten or twelve houses at a time.  Now, the builders descend in with huge crews and equipment, and build FAST.  I have seen 3 or so sixty or seventy home developments in the last couple of years shoot up.  I figured, well, that about fills this market, more building that we have seen since the early Reagan years!  WRONG.  On my route to work, they are new tearing up three huge areas all within 3/4 of a mile of each other and about that distance from two of the current developments, preparing for three more (!!)

There has been a new Super Walmart built, followed immediately by restuarants, strip mall up the street, office parks, two new call center facilities.

It seems as though after decades of sloth, even slow old Kentucky has finally decided to join the building race, and can't get enough.  The size of trucks and cars only seems to get bigger, with driveways in some cases now having mulitple SUV's (!!!)  In a state with one of the lowest per capita incomes in the nation, I cannot even guess where all the money is coming from.

And frankly, what few people have heard of Peak Oil, oil depletion, or Gore's global warming simply dismiss it out of hand as another Y2K type hoax, and show zero interest.

Roger Conner  known to you as ThatsItImout

I cannot even guess where all the money is coming from

                    Printing presses?
last sasquatch... Notes from NW Oregon.
We notice a huge decline in the weekend warrior traffic in our neck of the woods.  Also the motorhomes are not out like they were on the freeways like they were a couple of years go.
Drive up coffee places still in bussiness so the wife says all is fine(so far)