Diamonds, Water, and Public Transit

In yet another demonstration that Adam Smith knew what he was talking about, people are cutting back on their purchases of gasoline:

CLEVELAND -- High gasoline prices are turning some drivers into riders, say public transit authorities in several states.

It's a trend that Joe Calabrese, general manager of the Greater Cleveland Regional Transit Authority, expects to continue as long as a gallon of gas remains about $2.

"I know there are people on the bus today that weren't on the bus three years ago," he said.

It's the same story for the South Florida Regional Transportation Authority, which operates 72 miles of rail lines between Miami and West Palm Beach, mostly serving business commuters and students.

"We get to know our people," spokeswoman Bonnie Arnold said. "It's just a recurring comment that gas prices have gotten out of hand. Once it goes over $2 we do see an increase down here."

....in an Associated Press-AOL poll conducted last Monday through Wednesday, 58 percent of Americans said they have reduced the amount of driving they do as a result of recent increases in energy prices.