Charles Krauthammer on the only "solution" likely to do any good:You want more fuel-efficient cars? Don't regulate. Don't mandate. Don't scold. Don't appeal to the better angels of our nature. Do one thing: Hike the cost of gas until you find the price point.I am still confused about why environmental groups aren't publicly rejoicing about the rising costs of oil. Nothing will bring about the development of alternative energy or reduced carbon emissions faster.
Unfortunately, instead of hiking the price ourselves by means of a gasoline tax that could be instantly refunded to the American people in the form of lower payroll taxes, we let the Saudis, Venezuelans, Russians and Iranians do the taxing for us -- and pocket the money that the tax would have recycled back to the American worker.
This is insanity....
But instead of doing the obvious -- tax the damn thing -- we go through spasms of destructive alternatives, such as efficiency standards, ethanol mandates, and now a crazy carbon cap-and-trade system the Senate is debating this week. These are infinitely complex mandates for inefficiency and invitations to corruption. But they have a singular virtue: They hide the cost to the American consumer.
Want to wean us off oil? Be open and honest.
(HT Greg Mankiw)
2 comments:
I agree that a gas tax makes sense but the problem is a political one.
Al Gore actually floated such an idea during the 1990's and was ridiculed for it, mostly by the usual suspects. Of course now Al Gore is ridiculed by many of the same people for his other views on environmentalism.
In this case the problem really is with the people: any serious politician proposing a gas tax will be crucified in an election. And in this case I do not blame the politicians, because the reaction of the electorate would be so strongly against it.
Consider in this election cycle, we actually have 1 of the 2 main candidates, McCain, proposing a silly gas tax holiday. Now it's not working too well, and McCain has actually said that the unanimous opinion of economic experts doesn't matter, but the fact that he even proposes it tells you something about the politics of this.
Speaking of which, McCain seems to be an absolute moron on the issues.
If you care to, click the link and spread the word.
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