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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: steve harris who wrote (155494)	1/23/2006 8:54:32 AM
From: slacker711	Read Replies (4) \| Respond to of 793745

Because it doesn't work? I can think of a lot of economic arguments against taxing gasoline or raising mileage standards, but can you point me to something that implies that it doesnt work. It would seem to be a pretty basic fact of economics that increasing the cost of supply would decrease demand. If you look at the worldwide oil demand increase in '05 vs. '04 you can already see the principle at work. As for mileage standards, if you put SUV's and light trucks into the cars category tomorrow, you would see a dramatic droppoff in demand as those vehicles went up in price to compensate for the increased taxes that the manufacturers would have to pay. Seems like pretty simple laws of economics to me.... Perhaps an even better benefit than the hit to consumer demand would be the incentive for manufacturers to look at alternative energies. The case for hybrids, hydrogen based vehicles or something totally new becomes a lot more compelling if you can guarantee that oil wont drop below $2 a gallon. Slacker