When that joke made the
rounds recently it dawned on
me that I’d heard it before in
the 1970s. It was then that the
inflation-adjusted price of crude
oil was well on its way toward
the same altitude it occupies
today. In the intervening years,
the economy has become more
energy efficient. We now get a
greater output per unit of crude
oil consumed, but the jokes are
still with us.
On that score, readers who
were not around to experience
the 70s don’t know what they
missed. Looking back, it is easy
to find unintentional humor in
the news stories of those days.
For example, consider a passage
from a 1974 edition of the
Wall Street Journal that said,
“The rapid growth of nuclear
power over the next two decades
is viewed as virtually assured.”
Then there’s Treasury Secretary
William Simon who was met
with incredulity when he stated
his belief that world oil prices
would someday come down.
There are a lot of things about
the 1970s besides jokes that
would have a familiar ring. For
example, take the well-known
straits of the U.S. automakers. It’s
nothing new. Consider this from
the same WSJ edition by an auto
analyst wringing his hands over
car sales: “It looks as though half
the dealerships in the country
have stopped selling cars,” and,
“You have to go all the way back
to the 1930s to find it like this. I
don’t know how long things can
go on deteriorating.”
Little did he know that things
would continue to deteriorate
over the next 35 years for U.S.
automakers,
at least in
terms of their
U.S. market
share.
Nor were
politicians of
the day any better at dealing with
energy issues than their counterparts
in 2008. One of the big
legislative debates was whether
to raise the 4-cent/gallon federal
gas excise tax as a means to cut
energy consumption. (It is now
at 18.4 cents.) This idea was part
of something called Project Independence
which was aimed
at severing the country’s dependence
on foreign oil. Yeah, that
really worked.
The experience of buying a car
in the 1970s was not what it is
today, at least if you were interested
in a fuel-efficient model.
The only high mpg vehicles back
then were hatchbacks from foreign
automakers. Unfortunately,
dealers for Honda, Toyota, and
the like knew they had a lock on
the fuel-efficient market. That’s
why my own experience trying
to purchase a fuel-efficient car
was less than pleasant. Not only
was the dealer uninterested in
negotiating, his whole take-it-orleave-
it attitude about the transaction
was downright snotty.
Of course, arrogance in auto
dealers are still with us. Perhaps
the most visible indication
of this comes from dealerships
handling the Smart USA fortwo
coup now reaching American
shores. Getting in line to buy the
little 1,800-lb, 41-mpg car costs
$99. The fee gets applied to the
purchase price. Of course, the
waiting list is up to a year and a
half long. Chalk it up to lessons
not learned in the 1970s.