Comments on Gregable.: I want $10/gallon gas.

Ryan Street, I recommend you read my later blog po...

2008-06-27T09:25:00.000-07:00

Ryan Street, I recommend you read my later blog post on how this really won't put everyone on the street.

Car companies don't necessarily mind higher gas prices. They aren't selling the gas. In fact, it gives them a way to encourage many people to buy newer, more efficient cars to replace their aging gas-guzzlers. GM for example is "betting the farm" on their chevy volt and creating alot of jobs in the process.

Amit, I'll reply in kind to your bullets:

1) Public transportation isn't always the most efficient way of transit anyway(there are numerous studies that show that many transit systems use more oil per person per mile than cars), but when it is efficient it will still get costlier, but at a slower pace than cars, making it increasingly a more valuable alternative. Still, there are many other alternatives without this drawback like carpooling, walking, biking, more efficient cars, telecommuting, living closer to your work, etc.

2) As for business moving overseas, it is a valid point called a "carbon tax leak", but that would only be true if other countries didn't also pass similar laws. The US can enforce that on it's trading partners through import tariffs if it so desires. Things like Kyoto and the new UN talks are designed to address this issue as well.

As for general economic unrest, I would also recommend reading my later post as to how this wouldn't put anyone on the street. It doesn't have to happen overnight either, usually laws like this are passed to slowly take affect gradually over the course of several years so that the changes are predictable and incremental.

Yup there are many negative scenarios you haven't ...

2008-06-25T11:12:00.000-07:00

Yup there are many negative scenarios you haven't looked at here...

1. Rise in Gas prices will also increase Public transportation prices.

2. Companies will be forced to increase salaries as goods prices will also increase and they will notice moving work offshore is more profitable now leading to more job cuts and suddenly those people will "realise" how much costlier stuff has become.

And yeah Praire company fuel has no tax... so the extra tax money for govt would be a temporary source of income.

As a side note, such a high gas price would be disruptive for the economy and bring unrest to people/economy/country in general even for the greater good.

It all sounds good in theory, of course, but that ...

2008-06-10T23:35:00.000-07:00

It all sounds good in theory, of course, but that is exactly what it is. But you've stepped on your own foot in one aspect.

Paul doesn't have the money to pay for gas. He then loses his job because he can no longer afford to drive to work and misses too many days. He ends up on welfare. He is now taking more money out of government instead of contributing any at all. He has officially become a negative that cancels out the others.

And the car plants that have shut down their facilities just laid off numerous other people, forcing them into government assistance without putting any back into the system. Suddenly, we have a great amount of people that suddenly are taking without giving any back into the system. This causes deficit, which makes the government borrow money from other countries, (with interest of course) which is giving money to other countries, which what was one of the points we were trying to do away with in the first place. Bummer.

I know this is a bit lofty, but so was your theory. I like your ideas, and you are in a good direction, but we need a way to keep america employed and lower prices at the same time. That is the real problem.

keep up the good work!!!

why don't we tax the shit out of richie rich so we...

2008-06-09T18:20:00.000-07:00

why don't we tax the shit out of richie rich so we can use that money to build 100 new refineries and drill for oil in the usa? Richie Rich has plenty of money and should share what he throws away. Some black guys should rob his dumb rich ass.

Very cute, jcr. My point would be at $10, gasolin...

2008-06-08T13:08:00.000-07:00

Very cute, jcr. My point would be at $10, gasoline would be more prohibitive and I'd end up buying less of it which would lower demand and hence price for everyone.

doctorb, I tried to address your concern a little more clearly in a newer post. If I hiked a person's gas price by $6/gallon but simultaneously started wroting them a $300 check every month, I doubt that you would honestly see alot of social unrest.

Your scenario leaves out a very important, perhaps...

2008-06-08T06:33:00.000-07:00

Your scenario leaves out a very important, perhaps most important, element. Too sharp of a rise in gas price too quickly will trigger a significant increase in social unrest. Riots, increased crime, and vandalism are serious adverse consequences which need to be carefully considered.

I'll sell you all the gas you want for $10/gallon....

2008-06-07T15:44:00.000-07:00

I'll sell you all the gas you want for $10/gallon. Where would you like it delivered, and how will you be paying for it?

-jcr (this offer is good for the next 30 days.)