Booms, Busts, and Recoveries Message Board

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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Ilaine who wrote (21894)	7/31/2002 3:28:16 PM
From: Snowshoe	Read Replies (1) of 74559

It's all due to CAFE CAFE has grossly distorted the vehicle market. Given a public policy objective of lowering gasoline consumption, a better approach would be to junk CAFE and impose higher gasoline taxes. Let the market figure out out to achieve the savings. The savings could be in many forms: more efficient vehicles, tele-commuting, car-pooling, mass transit, moving closer to one's job site, etc. The tax rate could be adjusted periodically to control the rate of gasoline consumption, in the same way that the fed controls the money supply.

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