Black gold, Texas Tea
The more the price of oil goes up, the higher the price at the gas pumps, the more we have to spend to drive our cars-bummer, huh?
But, wait a minute, back up here-if we’re paying more, are we driving less and driving smarter? I think, maybe so. Thomas Freidman’s column in the NYT discusses this phenomenon.
His piece wonders what a presidential nominee, who was willing to tell the truth about the situation would say in regards to the $4.00+/gal price at the pumps. Should we try to reduce the price?:
No, our mythical candidate would say the long-term answer is to go exactly the other way: guarantee people a high price of gasoline — forever.
This candidate would note that $4-a-gallon gasoline is really starting to impact driving behavior and buying behavior in way that $3-a-gallon gas did not. The first time we got such a strong price signal, after the 1973 oil shock, we responded as a country by demanding and producing more fuel-efficient cars. But as soon as oil prices started falling in the late 1980s and early 1990s, we let Detroit get us readdicted to gas guzzlers, and the price steadily crept back up to where it is today.
We must not make that mistake again. Therefore, what our mythical candidate would be proposing, argues the energy economist Philip Verleger Jr., is a “price floor” for gasoline: $4 a gallon for regular unleaded, which is still half the going rate in Europe today. Washington would declare that it would never let the price fall below that level. If it does, it would increase the federal gasoline tax on a monthly basis to make up the difference between the pump price and the market price.
I agree with Freidman here. Go back and read the whole article. This is exactly what should happen. I think heating oil is another matter, but in regards to gasoline, the more it costs, the less we’ll use and the better our environment will be for it. I’m sure there are many other facets to this argument, but I have always felt this way and it’s nice to have your opinion validated in the NYT. Thanks Tom!
Related posts:
Just how did you “let” the auto manufacturers got you re-addicted to a gas-guzzler? I’ve always been able to buy the vehicle of my choice, haven’t you? If I had wanted to buy a souped-up roller skate with a two-cylinder engine, I would have. No, thanks.
You can’t simply put into place one component of a plan to reduce America’s energy consumption. It has to be a comprehensive policy, or it is just a band-aid that will not solve the problem. A comprehensive policy would involve subsidies for public transportation, changing the way we use land and build houses, incentives for developing and using alternative energy sources, incentives for people to buy (and for manufacturers to produce) higher gas mileage cars, incentives to develop vehicles that run on non-carbon based fuels, and on and on and on.
By the way, I think a price floor at $4 a gallon is pretty much a moot point anyway, or it will be shortly.
It’s the generic “we”, wormwood. I’ve never been addicted to gas-guzzlers, but you know, very well, that a good portion of our population has been.
I am claiming ignorance here, though-what point, exactly are you trying to make? Do you dirive an Earth Destroyer?
“I think a price floor at $4 a gallon is pretty much a moot point anyway, or it will be shortly.”
Agreed-and it would be fine with me if it went to $10/gal.
Yep, got two of em’. One runs on virgin timber and the other, baby kittens.
lol-that is great!
Do you mean that it a $10/gal minimum is okay with you provided other measures to reduce our dependence upon fossil fuels, like I described, are undertaken simultaneously? Or do you mean lets do a $10/gal minimum immediately, without the other measures?
Secondly, I strongly believe that we need to make all of these changes as quickly as possible, but even if we could do that, it will take years to achieve all of the benefits. Therefore, I would be in support of gradually raising the minimum cost of gasoline, as the benefits from the other parts of the energy policy become apparent. (Although, I have a feeling that the price will rise on its own regardless…)
Lastly, (a rhetorical question not really directed at ladkiddo with a lower case L) I seem to recall that a Congressman from this area went to Brazil using taxpayer’s money to learn about how they are dealing with their dependence on fossil fuels, and how their cars get 50mpg as a national average. What was his name again? John R. something… anyway, has he proposed anything to move us towards this better future where we don’t rely on fossil fuels so much? Oh yeah, now I remember, it was John R Kuhl. That’s his name. I’m still watching to see what he does with this knowledge he learned in Brazil at taxpayer expense, and I hope RT readers are watching too … gosh, I hope even the D&C is watching, but I won’t hold my breath on that one.
I am sooo in agreement with you, Paige, that we could be the same person!! (that’s Paige with an upper case P)
No one has ever seen us together, have they? We could be the same person and no one could prove otherwise.
I remember when gas just $1 early 2001. Craziness. We’re headed in a horrible direction. A quick example: oilheat users. They’re running out of money to keep their heating supply. Working for NORA I have seen the toughest people break down and just give up. We can’t let that happen. Someone should tell them about bioheat. They will still use oil, but a much better, biodegradable kind. It can help conserve 400 MILLION gallons of oil. Conservation is the key to lower prices in my honest opinion. Here’s the site i got info from: oilheatamerica . com/index.mv?screen=bioheat
Wow, I’m trying to wrap my brain around that one!
Ouch-it hurts.
Talk of higher gas prices forcing change is all fine for middle cass suburbanites who can afford $4 or more for gas. They may have to give up a movie at the Little or a night at GeVa, perhaps even a second glass of wine, but for members of the underclass, $4, 5 or 6 a gallons means that even if they could still get to their minimum wage service jobs, the rise in prices for other goods that will rise as a result of these prices will have devastating consequences.
Liberals might think about sacrificing their AWD for the latest Prius, while the poor will have no such choices. Their choices will be between food and home heat.
Its an old reference to Superman, where Lois Lane noticed that no one had ever seen Clark Kent and Superman together, so they could be the same person. Obviously, in this situation, I am superman, and you are RT’s version of Clark Kent.
yup, glasses and all!
Gas wasn’t a dollar a gallon in 2001, not even close. It was approaching $2.00 a gallon in 2000. It was over $1.00 a gallon in 1998.
You’re both wrong. Check the Department of Energy data, in 2000 gas averaged a bit less than $1.50. Then it dropped, then George Bush started a war to save our national interests and well the rest is history…
(Although by “the Price is Right Rules”, Tony is our new winner!)