NYT: Pain at the Pump? Bash Bush, Tax Gas
If there's any surprise to be found in The New York Times editorial "Pain at the Pump And Beyond," it's that the Old Gray Lady almost acknowledges the effects of supply and demand on the price of gas. Watch carefully, or you might miss it! "The Bush administration can’t be entirely blamed for the pain at the gas pump. But its shortsighted energy policies — zealously focused on increasing the energy supply, with little attention paid to conservation and greater fuel-efficiency — means the country is far too dependent on oil that is both ruinously expensive and ruinous for the environment. There are several reasons for oil’s dizzying price spiral. Soaring demand in fast-growing developing countries like China and India means there is little oil to spare. The turmoil in financial markets — the White House can take a good chunk of the blame for that — has driven prices even higher, as investors have bought oil and other commodities as stocks and the dollar plunge." There's more Bush bashing (believe it or not), but the ed gets strange when it argues that the U.S. should raise taxes on gas. Huh? Sympathize with consumers for high gas prices, blame Bush and then argue we should be paying MORE at the pump? I guess rhetorical consistency is the hobgoblin of little minds.
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"Exactly. If it weren’t for half ton pickups and body on frame SUVs folks in the Southeast would be stuck walking or riding the bus. What other choices do they have?" - Strippo Dude. It takes trucks to ship all of those veggies and fruits into the street markets in large cities. Or are we to assume that New Yorkers are all backyard gardeners?
William, you (and many others) seem to have a skewed view of how much oil China consumes vs. the US. I encourage you to check out this handy tool from the EIA. The figures are from 2006, but even with an additional full year of Chinese and Indian growth added to the data, I am confident the US consumes more than twice as much as both countries combined. For now, and for the foreseeable future, US consumption is the largest driver of world oil prices, and therefore US gas prices. A 1% drop in consumption in the US will be more effective at reducing US gas prices than a 2% drop in China and India combined.
"Exactly. If it weren’t for half ton pickups and body on frame SUVs folks in the Southeast would be stuck walking or riding the bus. What other choices do they have?" Mules.