more on gas prices

[Dave Farber <dave () farber net>]

> X-Sieve: CMU Sieve 2.2
> Date: Mon, 08 Aug 2005 07:15:31 -0700
> From: rick tait <rickt () rickt org>
> Subject: gas prices
> To: dave () farber net
>
>
> Dave:
>
> I'm sure I will be corrected to some degree by the fine readers of
> IP, but as a European living here in the US for more than a decade, I
> get mightily ticked off when I hear Americans carping on about the
> price of gas. How can people get pissy about gas "being expensive" when:
>
> - it has not really tracked regular inflationary costs since the 1950s
> - the at-pump price has been, and continues to be artificially
> reduced by government intervention
>
> For all the "free-market values" that are espoused by the pro-gas
> (Republican) administrations, I find it to be a true case of the pot
> calling the kettle black. The fact is America has over the last 50
> years put itself in a position of being utterly and completely
> reliant on artificially lowered gasoline prices, to the extent that
> if gasoline actually "cost" what it *should* cost (i.e. if government
> support was removed) then an economic catastrophe would occur:
>
> - airlines (already on shaky ground at best, and receivers of immense
> amounts of governmental "subsidies"/loans) would no longer be able to
> balance their books, and almost immediately declare bankruptcy
> - the US' impressive and massive goods-transport system would no
> longer be able to support itself (one example: think of how much a
> "normal" gasoline/diesel price would affect Walmart's *vast*
> transportation costs
> - the US's automotive manufacturing industry would collapse
> (manufacturing/transportation costs alone might do it, but think of
> how  fewer new cars/SUVs/trucks would be sold)
>
> We got ourselves into this mess. Now how do we get out of it?
>
> RMT.

-------------------------------------
You are subscribed as lists-ip () insecure org
To manage your subscription, go to
 http://v2.listbox.com/member/?listname=ip

Archives at: http://www.interesting-people.org/archives/interesting-people/