A gas tax holiday from reality
Anyone who drives these days gets sticker shock upon arriving into the gas station. In recent days in the DC area the average price I’ve seen is well over $3.50. Many analysts predict that when the summer driving season hits in full force we’re likely to see an average price of at least $4 a gallon. These prices are a dramatic increase from the 1999 price which, in today’s dollars, averaged around $1.25 - the lowest point of the past 30 or so years. The truth is that the price of gasoline has fluctuated greatly over the years and if measured in inflation adjusted dollars, we are now reaching the high point of the early 80s right after the start of the Iran-Iraq war.
So, what is the government to do? Well, considering that we’re in full flung political campaign mode these days, our presidential candidates certainly have something to say about this infringement on the American way of life! John McCain jumped out front and center and proclaimed his support of a gas tax holiday to provide relief to American car drivers during the summer driving season. Hillary Clinton jumped on board and expressed her support. Obama called this for what it is – a scheme. Clinton then criticized Obama for being for a gas tax holiday when he was a state senator and being against it as a presidential candidate. Even the White House has been skeptical of such quick fixes. The NY Times reported that President Bush’s spokeswoman essentially sided with Mr. Obama in saying that tax holidays and new levies on oil companies would not address the long-term problems of dependence on foreign oil. This is certainly an interesing bipartisan debate: Clinton and McCain v Obama and Bush.
The truth of the matter is that a gas tax holiday will offer little relief to consumers and actually serves to perpetuate the very problem we’re seeking to solve. Clinton and McCain both got this one wrong. A gas tax holiday would lower the cost of gasoline, thereby encouraging consumer to buy more of it. A recent analysis by the Washington Post predicted that consumers would actually see little benefit from a gas tax holiday and oil companies would be the real winners. Right now the true cost of gasoline that takes into account national security and environmental costs is much higher than the price actually reflected at the pump. The 18.4 cent/gallon gasoline tax is an effort towards correcting for this externality, but it is really just a drop in the bucket. Most experts admit that this idea really is a loser, but it doesn’t stop politicians from trying to win easy political points.
I actually heard an interesting idea by Paul Roberts, the author of the “The End of Oil” in his criticism of McCain’s gas tax holiday idea. Roberts suggested that although there’s very little we can do in the short run to lower the cost of gasoline, one intervention that could actually bring some benefit would be addressing the problem of tire underinflation. Yes, I know it sounds ridiculous to say that just pumping up our tires could be a more appropriate remedy to the high cost of fuel, but if you look at the numbers, it actually makes sense.
The proposed gas tax holiday by Senators McCain and Clinton would save Americans about 5% on each gallon of gas in the short run. That’s not a dramatic savings. Let’s compare that now to the potential savings that could be derived from proper tire inflation. The GAO found that one quarter of all cars on the road have tires that are underinflated by at least 8 psi. Running a car with tires that are 20% underinflated (5-7 psi) can increase fuel consumption by 10%. It seems that simply ensuring that our tires are properly inflated has the potential to decrease fuel consumption. The U.S. Energy Department has reported that every pound per square inch of tire underinflation wastes 4 million gallons of gas daily in the U.S. It’s also about safety. The GAO estimated that in 1999, underinflated tires caused 247 deaths and 3 million injuries.
Conclusion – the politically popular thing to do: promise voters you’ll lower their gas prices over the summer. Cost to the economy: about $10 billion. The more effective intervention: enact legislation that will encourage drivers to maintain properly inflated tires. This could come in the form of a public awarenesss campaign, or perhaps subsidizing the provision of free nitrogen fillups at gas stations across the country (filling tires with nitrogen leads to less leakage than normal compressed air). I’m not sure the price tag of such interventions, but I’d bet that it could be done for much less than $10 billion. Such a common sense solution might not be as politically popular, but could actually make a meaningful contribution.
Of course, the real bipartisan solution to the cost of fuel is long term thinking that places a high priority on technological solutions, conservation, and alternative fuels as has been promoted by the PSA Advisory Board. Critics will argue, however, that these long term solutions do little to help consumers that are suffering in the short term. My answer to the critics is that we can actually do something in the short term that’s actually much more effective than a gas tax holiday – a national tire inflation campaign. It’s time to stop the political posturing and get serious about real policy changes that can make a difference both in the short and long runs.
MY FELLOW “BITTER”, STUPID, WORKING CLASS PEOPLE
If you think like Barack Obama, that WORKING CLASS PEOPLE are just a bunch of “BITTER”!, STUPID, PEASANTS, Cash COWS!, and CANNON FODDER.
You Might Be An Idiot!
If you think Barack Obama with little or no experience would be better than Hillary Clinton with 35 years experience.
You Might Be An Idiot!
If you think that Obama with no experience can fix an economy on the verge of collapse better than Hillary Clinton. Whose
husband (Bill Clinton) led the greatest economic expansion, and prosperity in American history.
You Might Be An Idiot!
If you think that Obama with no experience fighting for universal health care can get it for you better than Hillary Clinton. Who anticipated this current health care crisis back in 1993, and fought a pitched battle against overwhelming odds to get universal health care for all the American people.
You Might Be An Idiot!
If you think that Obama with no experience can manage, and get us out of two wars better than Hillary Clinton. Whose
husband (Bill Clinton) went to war only when he was convinced that he absolutely had to. Then completed the mission in record time against a nuclear power. AND DID NOT LOSE THE LIFE OF A SINGLE AMERICAN SOLDIER. NOT ONE!
You Might Be An Idiot!
If you think that Obama with no experience saving the environment is better than Hillary Clinton. Whose
husband (Bill Clinton) left office with the greatest amount of environmental cleanup, and protections in American history.
You Might Be An Idiot!
If you think that Obama with little or no education experience is better than Hillary Clinton. Whose
husband (Bill Clinton) made higher education affordable for every American. And created higher job demand and starting salary’s than they had ever been before or since.
You Might Be An Idiot!
If you think that Obama with no experience will be better than Hillary Clinton who spent 8 years at the right hand of President Bill Clinton. Who is already on record as one of the greatest Presidents in American history.
You Might Be An Idiot!
If you think that you can change the way Washington works with pretty speeches from Obama, rather than with the experience, and political expertise of two master politicians ON YOUR SIDE like Hillary and Bill Clinton..
You Might Be An Idiot!
If you think all those Republicans voting for Obama in the Democratic primaries, and caucuses are doing so because they think he is a stronger Democratic candidate than Hillary Clinton.
Best regards
jacksmith… Working Class
p.s. You Might Be An Idiot!
If you don’t know that the huge amounts of money funding the Obama campaign to try and defeat Hillary Clinton is coming in from the insurance, and medical industry, that has been ripping you off, and killing you and your children. And denying you, and your loved ones the life saving medical care you needed. All just so they can make more huge immoral profits for them-selves off of your suffering…
You see, back in 1993 Hillary Clinton had the audacity, and nerve to try and get quality, affordable universal health care for everyone to prevent the suffering and needless deaths of hundreds of thousands of you each year.
Approx. 100,000 of you die each year from medical accidents from a rush to profit by the insurance, and medical industry. Another 120,000 of you die each year from treatable illness that people in other developed countries don’t die from. And I could go on, and on…
OBAMA AIDE: “WORKING-CLASS VOTERS NOT KEY FOR DEMOCRATS”
DEBATE! DEBATE!! DEBATE!!!…
Comment on April 29, 2008 @ 10:11 pm
DEBATE! DEBATE!! DEBATE!!!
It’s time for everyone to face the truth. Barack Obama has no real chance of winning the national election in November at this time. His crushing defeat in Pennsylvania makes that fact crystal clear. His best, and only real chance of winning in November is on a ticket with Hillary Clinton as her VP.
Hillary Clinton seemed almost somber at her Pennsylvania victory speech. As if part of her was hoping Obama could have proved he had some chance of winning against the republican attack machine, and their unlimited money, and resources.
But it is absolutely essential that the democrats take back the Whitehouse in November. America, and the American people are in a very desperate condition now. And the whole World has been doing all that they can to help keep us propped up.
Hillary Clinton say’s that the heat, and decisions in the Whitehouse are much tougher than the ones on the campaign trail. But I think Mr. Obama faces a test of whether he has what it takes to be a commander and chief by facing the difficult facts, and the truth before him. And by doing what is best for the American people by dropping out of the race, and offering his whole hearted assistance to Hillary Clinton to help her take back the Whitehouse for the American people, and the World.
Mr. Obama is a great speaker. And I am confident he can explain to the American people the need, and wisdom of such a personal sacrifice for them. It should be clear to everyone by now that Hillary Clinton is fighting her heart out for the American people. She has known for a long time that Mr. Obama can not win this November. You have to remember that the Clinton’s have won the Whitehouse twice before. They know what it takes.
If Mr. Obama fails his test of commander and chief we can only hope that Hillary Clinton can continue her heroic fight for the American people. And that she prevails. She will need all the continual support and help we can give her. She may fight like a superhuman. But she is only human.
Sen. Hillary Clinton: “You know, more people have now voted for me than have voted for my opponent. In fact, I now have more votes than anybody has ever had in a primary contest for a nomination. And it’s also clear that we’ve got nine more important contests to go.”
Sincerely
Jacksmith… Working Class
Comment on April 29, 2008 @ 10:12 pm
Jacksmith – Cool your jets for a moment and read:
“The truth of the matter is that a gas tax holiday will offer little relief to consumers and actually serves to perpetuate the very problem we’re seeking to solve. Clinton and McCain both got this one wrong.”
Again: “Clinton and McCain both got this one wrong.”
It is too bad for you that you’re so very misinformed & misguided.
Comment on May 2, 2008 @ 4:08 pm
Jacksmith – I can’t tell if you want HRC or Bill in the White House. Is it because you are thinking you will be getting a two-fer?
One of the greatest Presidents in history? I disagree.
You are speaking of Bill Clinton’s record not Hillary’s. Obama has more experience then Hillary…Illinois Senate & Congress. Doesn’t take much to get the hang of the BS in Washington.
Have you heard your candidate’s lies. Flat Out lies to the American People. Not just Bosnia….plenty more….it is perpetual. If you think that is a good quality or makes a good politician then ofcourse you are going to support her.
Barack has great team building and management skills. That is a good quality of a leader.
Clinton’s know what it used to take to win the Whitehouse not anymore because last I checked they are still BEHIND!!
Barack drop-out…that is absurd…let the voters decide
More people voted for her…You are quoting a LIAR…that is not true…to make it real in her mind she is including Michigan and Florida…Barack didn’t even campaign in the states and his name was not on ballot in Michigan. People don’t know him as well as her either and she just got the FAMILIAR NAME vote…
She said she would OBLITERATE IRAN! Dude….
I do not believe you are one that cares to hold your political leaders accountable…you rather choose to say that hek if they get the job done I don’t care how they go about it…beat them at their own game…I don’t care how many people they need to steam roll, chop down, slash and burn to get the job done just have them do it.
Bill was paid 800,000 from Columbia….CAFTA! They are the elitests…
HRC should have gotten behind Obama earlier….
Out with the old in with the new….OBAMA
Barack is wise (sorry much wiser then your candidate considering her vote on authorization of war with Iraq and she just Authorized Iran too) Has an ability to choose good advisors and make good decisions. Your candidate is a waffler anything goes to win. You are under estimating Barack because you have not had the chance to get to know him.
Barack is Bill Clinton 2.0 Can’t believe I said that…he is the new improved version. The one that knows what integrity and doing the right thing is. The one that knows the definition of *is* The one that HAS NOT LIED to the American People. The one that DID NOT TELL OUR CHILDREN…that oral sex doesn’t count! HELLO!
Barack is way better educated and way more grounded then HRC. Obama Taught Constitutional law… Understands the constitution of these united states way better then HRC.
HRC…my way or the highway…”YOU ARE EITHER WITH US OR YOUR NOT!” She says, HELLO OUR COUNTRY WILL GET NO WHERE..she is just like GWB
My Goodness she wasn’t even close to somber at PA rally. That sounds like projection to me
Don’t run around calling people idiots..it really discounts your words.
You sound so fearfull…
Barack is NO elitist…you can try to play the “point” as a political operative would but the bottom line is it couldn’t be further from the truth and you know it I won’t even argue the point.
Barack is HUMBLE…A REAL MAN… a man that knows how to keep his ego in check. His wife is Eleanor 2.0….She is a real MOTHER, a real MOM…All HRC could handle was one, what a whimp hardly a real mother in touch with the real needs of the American people.
Comment on May 2, 2008 @ 4:53 pm
Jacksmith- Do yourself a favor and go on You Tube and type in Hillary God Bless Us Rich People. There you will see what an elitist really is, the words coming right out of Hillary’s mouth. It is part of an interview with Bill O’Reilly within the past week.
While you are there, you might also type in Nobel Prize winning economists for Barack and you will see two of the world’s most respected economists endorsing Barack Obama for president. Pay attention, and you might change your mind.
Comment on May 3, 2008 @ 4:02 am
I’m a registered Republican, but I’m voting for Barack Obama. President Bush lied to me, continued to try and insult my intelligence and then basically (through his VP) said he didn’t give a flying fig about my concern with this war. Thank you John McCain for confirming what we already knew. We went into Iraq for oil …. and to settle a PERSONAL score since Bush wanted to kill the man who tried to kill his “Daddy.”
Since I’ve already had a president who lies as easily as he breathes, why would I vote for a woman who has the same pathological tendencies, a woman who race-baits by pitting whites against blacks and vice versa?! A woman who practices politics as usual and panders to women whenever it looks like she’s losing. I’m not voting for her or any woman just because they’re a woman. I’m voting for the best candidate, and Barack Obama is it!
I’ve had it with Washington insider politics. I want someone with new ideas and fresh energy. I want someone who’s honest, who doesn’t owe everybody in DC a favor. A person who isn’t suspected of a legion of unsavory activities including fraud, homicide, and a number of other felonies. And I especially don’t want another cowboy in the WH, someone who threatens to “obliterate” other countries just because she’s trying to pander to one constituency. I’m extremely pro-Israel, but Mrs Clinton, went too damned far with your Iran comments. Why is it that she said Obama was wrong in speaking about going after Bin Laden in Pakistan? She said his comments were rash and provocative, yet she threatens to NUKE an entire country into eternity, and this is all right? A country filled with innocent men, women, children and babies!!
Hillary Clinton is a lying, hypocrite, as was her sex-addicted husband. She has the nerve to question Obama’s judgment about Reverend Wright, yet she stays with a philandering pervert for ambition’s sake! Does anybody else see the madness in this?
Hillary, you have no morals, no judgment, no experience (apart from holding tea parties and photo ops), no personal integrity and you’re a joke. Stop trying to pander to women. You’re no feminist. The only reason you are where you are is because of BILL! No true feminist would need a damned man to help her succeed. True feminist pioneers don’t whine and cry and use their husband’s records as their own. YOU’RE A JOKE and I hope Obama blows your sorry butt out of the water!
Comment on May 3, 2008 @ 3:26 pm
It is sad that uneducated people think Hillary can fix the economy when she has mismanaged on her own campaign funds and that is why her campaign is 10 million dollars in debt. Why do you think she would do better for the economy then she has done for her own campaign. Hillary has not paid her bills and those vendors are threatening to turn her over to a collection agency. The way she has run her campaign shows me she no experience. Then she vote for the war in Iraq without reading the NIE report. Do that sound like experience to you? I don’t think so. The Clintons wants to get back in the White House to make good on the favors they owe for the 109 million dollars they have already been paid.
Comment on May 4, 2008 @ 5:50 pm
[...] the Aisle features a great article by Brian Vogt discussing Hillary’s proposal and then suggesting some more sensible ways to [...]
Pingback on May 4, 2008 @ 8:50 pm