gasoline jumped $0.16 in 1 hour today in upstate NY. I think that talk of increased CAFE standards and increased gas tax is going to get lost in the shuffle of the current gas spike.
I hate to say it, but it seems that economics will be the greatest factor slowing the previously exponential growth of gas/diesel usage in the US.
I heard today that GM's analyst board is meeting tomorrow, and will be "assessing" the 30% fall in SUV purchase rates this year, and the fact that GM lost $1,500 per vehicle sold this year. They will soon adapt or die off.
As the coming price hikes in gasoline are (IMHO) will be up by nearly 30 cents by next week. We will see the effects on the economy of an imposed hike in the cost of gas. Then all the greens and economists can sit back and see what negative incentives to the use of gasoline will do to the economy. I think that the tipping point will be reached soon, and I can finally stop hearing on TV how resilient the consumers are being in the face of higher oil prices. (IE draining more equity out of their homes, and ringing up higher credit card bills). Note GE's, walmart's and other retailers falls today on the stock market. You can keep saying that this "suprisingly isn't hurting the economy" until you are blue in the face, but it doesn't make it true, and sooner or later we'll have to face up to that fact.
Back to my original rant, and the topic of this post: I think that economic forces will push manufacturers to build more efficient cars in order to survive in this market, and the high prices of gasoline/diesel will push down consumption. Perhaps when the prices begin to recede, there can be talk of adding a gas tax.
(shit I sound like a conservative...)
Next topic... Inflation: its not just in the 70's anymore...
My response to CAFE standard hikes vs. Gas tax increases
8/30/2005 03:59:00 PM | Author: baloghblog
From my comment at Sustainablog:
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