Do they not understand anything about supply and demand? Have they not bothered to pay any attention to what has happened in this country for the last 35 years? It's not hard; even a GOP politician ought to be able to figure it out, since they proclaim they are in favor of "market solutions."
In 1973, the price of a gallon of gas was about thirty cents or so. After two oil crises (`73 and `79), the price of a gallon of gas had gone to over a dollar. 30 years ago, that was rather expensive, and Americans reacted to that by dumping the `60s and `70s muscle cars and similar boats for small, fuel-efficient cars. Energy conservation ruled the day and laws were enacted mandating levels of fuel economy. (Of course Detroit hated that, they were no more capable of building decent small cars 30 years ago than they are today.)
Oil prices collapsed in the mid `80s and, other than during the Persian Gulf War, they stayed low until just before Dorquemada took office. Gas was usually below a dollar a gallon and stayed there; it was by no means unusual to find a place to fill up for less than seventy cents a gallon (depending on the market area). Since gas was cheap, people became less concerned about fuel economy, which gave rise to the SUV boom, many of which had fuel economy ratings in the low teens.
Gas prices have quadrupled since 2000. Most dealerships cannot give away SUVs. GM is mulling over ceasing production of the Hummer H2, probably one of the most egregious gasoline-suckers around. Hybrid cars are virtually unavailable and when you can find one, expect to pay a premium over the sticker price.
So this is the moral of the story: If you want people to use less of something, you have to price it higher. If there is more oil, the price of gasoline will reflect that fact. Because gas will then be cheaper, people will use more of it. If you want people to use less gas, the price has to rise, whether because gas itself costs more or because, as they do in Europe, the government taxes the living shit out of it.
This isn't rocket science or Ph.D. level economic theory. But it is sure amazing that there are politicians who are too stupid to understand it, or are too venal and just ignore it.
H.L. Mencken would not be surprised that there are people who are stupid enough to be gulled by the "find more, use less" argument.
1 comment:
The douchebaggery never ends.
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