What determines the consumption of a good? Price. What determines price? Supply and demand.
Making fuel more expensive in the U.S.
does reduce fuel consumption- in the U.S. However, reducing demand by reducing consumption increases the supply. Saving 1 million barrels of oil here makes that 1 million available elsewhere, and that extra supply drives the cost down. Since raising prices in the U.S. had the effect of reducing consumption, lowering the global price has the effect of raising consumption.
The free market seeks a balance, so no discernible difference in global fuel consumption will be realized by reducing local fuel consumption.
The only thing that raising local fuel prices does is make everything in that region cost more, and depress that economy.
Healthy economies are the ones that innovate. Surplus funds and surplus time is the mother of invention.
Is there any disagreement here?
Quote:
Originally Posted by oil pan 4
If they can't leave social security alone and use the money for its intended purpose then I guarantee they wont save the environmental slush fund for the environment.
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Going off your tangent, the federal gov't has no business keeping a slush fund until they pay off the $17,500,000,000,000 they are already in the hole for.
I might be willing to get behind the extra tax if the gooberment could manage the ethical fortitude to set spending at no higher than revenues, and apply the extra funds to paying down the debt.
Until then, get out of my pockets, thugs.