COPA Response
GT Forum Members,
In addition to my post on the GT forum, I put the same post up on the Cirrus Owners and Pilots Association website(COPA). I own and fly a Cirrus SR 22 aircraft. Quite a different response over there as many members thought I was being rude to liberal's, imagine that. I answered many of their questions and comments this morning with the following post. If you care to read it, I have copied and pasted my response to other Cirrus aircraft owners below.
Gentlemen,
As to the question, did I write this, yes, I wrote every word of that post. I just purchased some new speech recognition software and loaded it onto my computer called Dragon NaturallySpeaking 9. Writing this lengthy post by sitting at my computer and talking into a microphone gave me a chance to practice using it. It works pretty well and I wrote this post in about one fourth the amount of time it would've taken me to type it. Second, I love the subject of economics, as that's what I studied in graduate school at Arizona State University. The basic principles of economics are very well known, and we have 2000 years of recorded history that allow us to study the effects of various governmental policies. If people are given good information and have some understanding of the subject in question, they will collectively make good decisions. If however they are given no or bad information, and have no knowledge of the effects of similar policies implemented in the past, they can't help but make unwise decisions. If I have a disdain of liberal economic policy is only because such policies have failed every single time they have been tried over the last 20 centuries. If a particular type of aircraft had an accident rate 20 times higher than that of the fleet average, but the general public had no knowledge of this, many people would end up purchasing one thinking it to be a good deal. Those same people, when informed about the high accident rate, would make a better decision. State and local representatives have the authority to impose whatever rules they want, but every policy they implement carries with it a cost to their constituents. One might argue that the cost is worth it because of an environmental benefit, but one cannot argue that the cost does not exist.
As to the question about profit trends and why increased raw material prices don't squeeze profit margins, here's your answer. While US oil companies do not own all of their sources of raw materials, they do own many of them. If you own an oil field and the cost of oil doubles, your profit skyrockets. Most major US oil companies are vertically integrated, as they own everything from the oilfield to the tanker, refinery, and even some retail outlets. Unlike homebuilders or automakers, gasoline prices may change on an hourly basis quickly and easily.
As to the question of why have the people we elect not devised a policy to eliminate our dependence, here's your answer. That we control only a small percentage of the world oil supply is not an opinion, it is a fact. Combine this with another fact, the United States has 4% of the worlds population, and currently consumes 25% of the worlds oil. Oil is the engine of economic prosperity, and for most of the uses that we put it to there simply is no substitute. While it may not be possible for the United States to become energy independent, we certainly could become a lot more energy self-sufficient. But here again, economic ignorance and stupid choices stand in the way of that goal. We just elected a US Congress and Senate that has pledged to, not allow any offshore oil drilling anywhere in US waters, not allow inland oil drilling in most areas of the continental United States, and even to bar tapping the massive oilfield underneath the ugly frozen tundra that nobody ever visits in Anwar, Alaska. To complement the genius of these policies, they have also pledged to bar all future nuclear plant construction. Drilling for natural gas is also out of the question. They put in place environmental policies that effectively bar all future refinery and power plant construction. This done, these same elected US Congressmen will bemoan the fact that we are too dependent upon foreign sources of oil. By any intelligent measure, these are all stupid decisions made by economically ignorant people. Please note that I did not say stupid people or ignorant people. These same people, given better information, a better understanding of the economics involved, and how these decisions impact their personal finances, would make far wiser choices.
As to Warrin's post where he scratches his head over the basic theme of shortages and daily gasoline price changes, indicating there did not appear to be a shortage because no stations were out of gas, I reply...... that there are only two ways to allocate anything, with a price or with a line. As long as the price mechanism is free to work, all things will be available at all times, with the price fluctuating to balance supply and demand. From fine diamonds to concert tickets, no matter how limited the supply nor how high the demand, I can pick up the phone and buy them right now, at the market price. When a price is fixed, however, for example, $50 Rolling Stones tickets, a long line will form, tickets will sell out quickly, and then be completely unavailable.(barring scalpers, of course) In the 1970s, we tried government price controls on gasoline, I still have nightmares of the long lines at the gas pumps.
I found the most interesting responses to my post to be those that indicated that I was insulting liberals, that I should have more respect for the opinions of others, and that my post was a diatribe against the left wing and isn't that the group I'm trying to persuade? I have the same disdain for liberal economic policies that I have for flying a Cirrus in known icing conditions. A lot of experience exists that unquestionably proves that both practices are foolish and destructive. Please go back and read the diatribes against flying in known icing conditions posted here on this forum. COPA members had no tolerance and zero respect for the opinions of pilots who chose to fly their Cirrus in icing conditions. They called it stupid, insane, suicide, irresponsible, contemptible, and a whole lot more. Don't COPA members think their message would be more effective if they didn't include the diatribe against pilots who flew in icing conditions, isn't that the group you're trying to persuade? Well gentlemen, I think your responses were appropriate as regards flying in icing conditions. Sometimes the truth is harsh. What if Cirrus Design promoted their aircraft as a way to get places year-round and never mention the potential cost of flying IFR out of Duluth in January? If they only talked about the potential benefit of being able to get there without mentioning the potential cost of losing one's life in an icing accident. Would that be okay? Higher gas prices are not going to cost any of us our lives, but the principle remains the same. It is not an opinion that marketplace distortions carry with them a cost that we all must pay, it's a fact. It is not an opinion that if we don't drill for oil here in the US we must be more dependent upon foreign sources, it's a fact. It is not an opinion that if we force refiners to brew up over 100 different blends of gasoline and prevent the free flow of this commodity across the country as a result prices will be much higher, it's the fact. And while everybody is entitled to their own opinions, nobody is entitled to the wrong facts. Again, knowledge and information are key. If a pilot is uninformed and ignorant about the effects of icing on his aircraft, he may well choose to fly in such conditions. If an accident results, he may blame Cirrus Design for producing a faulty product. If the American public is uninformed and ignorant about the effects on fuel prices by blending requirements and other governmental actions, they cannot pressure their elected representatives to make better choices. They will instead, blame 100% of their high fuel prices on "those greedy oil companies".
All the best.
Chip Beck