Blogging today will be light to non-existent, as I will be attending an LPR meeting today, at a remote location where wifi is either a distant dream or a lurking nightmare, depending on your point of view.
In the meantime, Charles Krauthammer shows that, no matter how brilliant a psychiatrist he is, and no matter how incisive he is about the Middle East, he and his keyboard shouldn't be allowed anywhere near economic issues.
In promoting his idea for a (basically unenforceable) $3 floor for the pump price of gasoline, he claims
It makes infinitely more sense to reduce consumption, drive the world price down and let the premium we force ourselves to pay at the pump (which begins the conservation cycle) go to the U.S. Treasury. If the price drops to $2, plow that $1 tax right back into the American economy by immediately reducing, say, Social Security or income taxes.The beauty of a tax that keeps gasoline at $3 is that it obviates the waste and folly of an army of bureaucrats telling auto companies what cars in which fleets need to meet what arbitrary standards of fuel efficiency. Abolish all the regulations and let the market decide. Consumers are not stupid. Within weeks of Hurricane Katrina, SUV sales were already in decline and hybrids were flying off the lots.
As though this Congress, or any Congress, would use extra revenue to reduce other taxes. As though the price of gas doesn't seep into every other item we buy. As though the very last sentence, the part about consumers not being stupid. doesn't proves that you could get rid of the CAFE-bureaucracy right now, without any new tax.
And then, there's the irony (already noted), in pushing for a mandated price in order to "let the market decide."
Have a nice weekend. Go for a drive someplace. See you Sunday.
Comments
I look forward to reading Charles Krauthammer, even watching him snarl the t.v. shows. This time he's gone too far outside his expertise. Charles, stick to analyzing capital hill morons, left bent blind leading blind parades and leave the economy to those that know what $3 gas floor would do to small business. Has he forgotten that not more than a year ago, many small businesses made cost of doing business decisions based on fuel costs. They bought or leased deisel trucks and look at where they are NOW> Thanks oil magnates!
Posted by: frank l | November 11, 2005 9:13 AM
Krauthammer has a gas tax fetish. It used to be his solution for affirmative action. Charge a gas tax and collect enough revenues to pay blacks for the past injustices they suffered and end any affirmative action. I don't know if a gas tax fetish is a treatable condition.
Posted by: David Gerstman | November 11, 2005 9:32 AM
As usual though Walter Williams hits it on the head.
http://www.washingtontimes.com/commentary/20051109-100630-3934r.htm
Posted by: Mr Bob | November 11, 2005 11:02 AM