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To: John Carragher who wrote (182540)11/8/2005 7:06:20 AM
From: Road Walker  Read Replies (1) | Respond to of 186894
 
re: looking at drop in demand it appears much of the problem was corrected by price. supply and demand.

The recent decline in price appears to be on the supply side as the GOM production resumes. Last week gas consumption was up.

re: to put a lux tax out of gas hogs also hurts auto industry. these cars are usually the highest profits for them allowing them to produce more low profit cars.

It's not a lux tax, it's an efficiency tax (and balancing credit, deficit neutral). You could get a credit on an efficient BMW, for instance. Or a hybrid SUV (properly tuned for fuel efficiency).

re: My alternative to gasoline would be allocations.

I still say you tax the problem and reward the solution; efficient use of energy. High gas prices do that, but not enough to alter behaviour. The same principles could be applied to other energy consumption devices.

Remember, 5% people/25% consumption. And all the economic/political and pollution benefits from efficiency. With our technology leadership, we should be leading the solution not creating the problem.

John