High gas price = tax hike?

Discussion in 'Economics' started by a529612, May 17, 2007.

  1. Does it actually work like that in the real world?
  2. To a consumer its the same. the only difference is that instead of the government reducing the deficit with it, their oil baron contributors get the money and LEND it back to our government for our grandchildren to worry about.

    All the politicians can say they didn't vote for any tax hike, but until the price rises enough to cut demand dramatically (regardless who gets the money), the price will keep rising because China has all the dollars in the world to bid the price up with.

    For example, back in December, I filled all my fuel jugs with gas at $2.17/gal.. back then, when gas was cheap, instead of declaring publicly that they were going to refill the SPR, they could have implemented a 50 cent per gallon gas tax increase to force a decrease in consumption, and it would have had ZERO effect because we'd had gas prices much higher last summer. The decrease in demand would in turn have forced the price of oil and gasoline lower (before tax), and at the same time reduced the deficit. We wouldn't be having the price spikes now.
  3. If consumers complain about gas prices, then they should trade in those fat ass SUVs and trucks they drive. Unless you're out there with a hybrid, you don't have a leg to stand on when it comes to complaining about high prices.
  4. Hybrids are just a hype job to milk an extra $5000-$10000 out of each consumer.

    My Saturn gets 45 mpg doing 75 mph, or 50 mpg if I'd slow down. They could build cars weighing under 2000 lbs with 1 litre motors that would get 50-75 mpg all the time if they wanted to. That's what they have in India. My guess is they don't because people stillbuy the other stuff and they can't make any money on small cars, so they try not to sell them.
  5. Fine. Then don't get hung up on the word "hybrid" and substitute it for "high mpg".

    Either way, a person who is driving a Yukon or Suburban or Hummer has no right whatsoever whining about expensive gas when they have voluntarily purchased something that requires as much fuel as a 747 to operate.
  6. They give a tax credit for buying a "hybrid", but not an efficient vehicle. Anyway, I agree with your comment in general.

    If gas was $10 per gallon, people would buy efficient vehicles, and we wouldn't have a trade deficit or budget deficit problem.
  7. No, we'd have an economy that was defunct.
  8. No, we'd have to learn to adapt and live within our means instead of handing out paper IOU's for our children to pay.