$100 a barrel

I think it was John C. Maxwell (leadership speaker) that said, "Money isn't everything, but it makes misery easier to deal with".
 
I was using the Forbes 400 richest Americans list. If you are not on that list, you are middle class.
 
Entitlement society....seems to be eroding the old ethic.

Oil and gas patch has been very good to me and the millions of other oil field trash that support their families and lifestyles via some connection to hydrocarbons. Through flush times and crash times.

I think I read somewhere that less than 10% of US citizens had net taxable incomes over $250K annually. So is that 'rich' by everyone's perception who isn't over that mark?

The important point IMHO with boats, as one example, is the amount of disposable income one has determines in large amount the size of the boat. Disposable income makes oil pricing moot at a certain level. But it's a poor man who judges others by the size of their dinghy.

What's very interesting is that a very large amount of money is tied up in US by a very small percentage of people. But hasn't it always been that way? Gotta go search for the stats on the percentage of very wealthy people over the years, is it growing as a percentage of population?

OilPatchAugs
 
I don't think the percentage of very wealthy people can increase. If it would tend to, the definition of very wealthy would change. It's all relative. Those on welfare in our country appear very wealthy to those starving in 3rd world countries.
 
So what part of the boating market will high fuel prices affect the most?
Sport Boats, Cruisers or Yachts?

I think it will hit the sport boat market first which is most often a stepping stone to the cruisers and yachts. So if you're cutting off the market at the knees won't the rest suffer as well?
 
couldn't you make the arguement that folks with sport boats typically pay less for fuel by being trailerable and filling up at land prices vs. higher cost of marina fuel?
 
Entitlement society....seems to be eroding the old ethic.

Oil and gas patch has been very good to me and the millions of other oil field trash that support their families and lifestyles via some connection to hydrocarbons. Through flush times and crash times.

I think I read somewhere that less than 10% of US citizens had net taxable incomes over $250K annually. So is that 'rich' by everyone's perception who isn't over that mark?

The important point IMHO with boats, as one example, is the amount of disposable income one has determines in large amount the size of the boat. Disposable income makes oil pricing moot at a certain level. But it's a poor man who judges others by the size of their dinghy.

What's very interesting is that a very large amount of money is tied up in US by a very small percentage of people. But hasn't it always been that way? Gotta go search for the stats on the percentage of very wealthy people over the years, is it growing as a percentage of population?

OilPatchAugs
According to a study done in 2006 99.87% of the worlds population are not millionaires. Millionaire defined as Financial Assets not including home. The group of millionaires grew 6.5% in 2005. In the USA the largest percentage of millionaires aquired there wealth from wage income.
 
Hmmm... I just read this entire thread about oil pricing and the rich, poor and middle class. As far as how the government treats each category, I think it is noteworthy that it penalizes (taxes) producers. That is, a 30 year old who leverages every penny of his or her networth to start a business may make little or no money for several years (or ever). If after 5 years of this, that individual lands a big opportunity and makes $200K, they will be taxed as if they are wealthy and make it all the time.

Another way to say this is government taxes income not wealth. Look at the dollar amount Ted Kennedy pays in taxes every year for money he didn't earn, versus what he believes a successful, risk-taking, hardworking American with no trust fund should pay.

I have always found it amazing how people view others. There is no generosity in taking money from the person standing in front of you and handing it to the person behind you simply because you perceive the one in front has more. If you think the person behind you deserves more, reach into your own pocket.

If we continue to de-incentivise producers through government action like higher taxes, we are effectively increasing risk. That means fewer people will be willing to take the risk. However, those that still do will reap larger rewards. Hence fewer individuals will have control over a larger portion of money. This brings us back to the "rich" getting richer complaint that so many seem to have. I find it ironic that politicians who use the "rich vs poor" as a political tool are the ones who exacerbate the spread between classes.

OK, about oil prices. I think it is ridiculous how much it costs to fill up either of my boats. I'd like to see it become a little easier for new players to enter the oil business, so the increase in supply and competition can lower the prices. Last time I checked, Congress was standing in the way of this. Interestingly, they blame the oil industry for the prices.
 
Koekie,

Well said. I'd like to add that Congress is also limiting where we (USA) can drill. We may not need additional players, just the ability to tap into existing oil fields and build additional refineries. Oh, and reduce the amount of tax imposed on a gallon of gas!
 
The green activists would lobby till their arms fall off that instead of drilling we should seek alternate fuels......when alternate fuels cause spikes in other commodities, they complain too.....WTF
 
I think the biggest effect will be felt by the entry level boaters. Most of them aren't aware of all of the expenses of boating, and therefore, tend to over-extend. What is the one cost they can cut? Fuel consumption. After time, they can't justify the cost of the boat when compared to the use. If the small boat ain't movin', it's not being used.

Take medium and larger boat owners. There's no doubt that it costs more to move the boats, but we can spend three days on our boat a mile from the dock and be almost as happy as when we cruise 75 miles. We reduce consumption when money gets tight, but we're still on our boat, and still can't live without it (to a point).

Those with the med and larger boats have more disposable incomes. Some will come to the point where they can't justify the cost of the boat, but most will change their habits to save the boating. Almost any family can end up in a boat on a whim, but med and large boat owners have made it a part of their lives, generally after an upward progression through the sizes.

After a prolonged boat crisis, the med and larger boat owners will begin to suffer as less entry level families are in boating, or in a position to move up if they stay in boating. There will be less demand for the used med and larger boats. That demand will translate into less demand for newer, larger boats, until the next surge, at which time the prices of all of them will sky-rocket as supply will be exceeded by demand.
 

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