“My view is that, rather than bemoaning the high price of gas, we should be celebrating it. And, if any presidential candidate should come out in favor of a $1 per gallon tax on gas, vote for that candidate.”
Freakonomics author Steven D. Levitt, after explaining why. Worth reading.
Can you imagine what raising the price of an essential commodity by 33% would have on the economy?
Recession wouldn’t begin to describe it.
You been asleep since since 2006 Rip Van Winkle? Gas was a dollar cheaper six months ago.
And the effect on the economy?
I remember 1973: http://en.wikipedia.org/wiki/1973_oil_crisis
The major argument that Levitt and Dubner use for higher gas taxes is that it will result in fewer cars on the road.
I haven’t noticed that, have you?
Indeed, the opposite effect can probably be noticed. Today’s $3.00 per gallon gasoline is having a MAJOR effect on car prices. It puts more cars on the road. How? by encouraging people to trade in their gas guzzlers and buy hybrids. If the gas guzzlers were scrapped maybe the net effect would be less oil consumption. The price of the cars they trade in, however, goes down thus encouraging other people to buy them. The net effect is that there are MORE cars on the road. All the old SUVs plus all the new hybrids.
Economically, there is also a reduction in the SUV owner’s net worth. The value of their vehicles is down and they face buying more expensive, smaller, less powerful cars.
There is also a shift in public safety. Arguably, smaller cars are less safe than big SUVs. That means that in the aggregate, the population is less safe.
Higher gas prices ARE a disaster!