Reuters says "economists" slammed the idea of a summer gas tax holiday, and they go on to quote Greg Mankiw, Gilbert Metcalf of Tufts, the Brookings Institute, and Paul Krugman... all whom are global warming hysterics. Lower taxes will lower the price and increase usage, adding to "global warming" they fear.
However, the increased usaged is not just wasted gasoline, but will add to trade and improve the economy. It will be people going on vacation or going to the outlet malls who might not otherwise do so.
Wednesday, April 30, 2008
Thursday, April 03, 2008
Congressional Energy Policy Confusion
Watching Democrats (and some Republicans) talk about energy can make one’s head spin. A couple of days ago, they hauled oil executives before Congress to explain why gas prices are so high. Shouldn’t they be applauding high gas prices?
When not chastising oil companies for the high price of gasoline, Congress talks incessantly about reducing CO2 output (usually by 80% of 1990 levels). CO2 output can only be reduced by reducing combustion of fossil fuels. The only way to reduce demand for fossil fuels is to raise the price. This would be done artificially with a carbon tax. So Democrats want “Big Oil,” (who control <10% of world’s oil reserves), to somehow reduce the price of gasoline, only to have Congress raise the price back up with taxation?
When not chastising oil companies for the high price of gasoline, Congress talks incessantly about reducing CO2 output (usually by 80% of 1990 levels). CO2 output can only be reduced by reducing combustion of fossil fuels. The only way to reduce demand for fossil fuels is to raise the price. This would be done artificially with a carbon tax. So Democrats want “Big Oil,” (who control <10% of world’s oil reserves), to somehow reduce the price of gasoline, only to have Congress raise the price back up with taxation?
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