jamesqf -
Quote:
Originally Posted by jamesqf
"Watching the economy stall"? Did you sleep through the last couple of years? The economy did a lot more than stall, and gas prices had little or nothing to do with it.
Indeed, if handled correctly (not that I really expect it will be), higher gas prices might even stimulate the economy. Higher energy prices encourage efficiency, which results in net savings. Take for instance someone who drives 15K miles a year. With gas at $4, that costs $4000/year in a 15 mpg SUV. If gas prices cause a new car buyer to choose a Prius instead of an SUV, that means s/he has an extra $2500 a year or thereabouts to spend on stuff other than gas. (Not to mention that the Prius is probably cheaper to buy than the SUV.)
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That's why I've advocated a "penny a month" gas price increase forever. If you *knew* that the price of gas would be almost 50 cents more in four years, you would make purchasing decisions and conservation decisions in advance of that increase in price.
The idea would be to bring fuel prices in line with Europe. In that scenario the US small car market would become more important.
Question for EU-Ecomodders: Correct me if I am wrong, but I think that European countries will use the tax as a "cushion" to insulate the consumer from variations in fuel prices.
CarloSW2