Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Einigkeit_Recht_Freiheit
Lets not put any more regressive tax burden on the backs of the citizens; arent we taxed enough? How foolish can freepers get taking silly ideas straight from the demonrats? Lets instead start opening up our own lands in Alaska for drilling and offshore in the idiot-weenie state of californcatia to add to the supply which drives down prices. Nobody here was calling for more gas taxes when it was $10 a barrel.... go figure!
14 posted on 03/04/2005 6:45:51 AM PST by aspiring.hillbilly
[ Post Reply | Private Reply | To 5 | View Replies ]


To: aspiring.hillbilly; Piquaboy

My poiints were pure economics fellas.

If consumption rises, and supply does not immediately follow, prices rise.

When prices rise in the oil market 2 things happen.

Companies go out and find more oil. To do so and bring that oil on-line and turn it into supply at the gas pump takes about 10 years.

In the meantime, prices stay high. High prices lead to increased efficiency, because the technology necessary to becomes cost effective.

Then, couple that increased efficiency (also about a 10-year process) with a sudden surge in supply and you get $10 a barrel oil.

But, during those 10 years, you transfer a very large amount of revenue into the treasuries of the oil exporters.

If a tax were placed on gas to mimic $65 a barrel (easily calculated) then people would make technilogical decisions based on that price information. Thus, efficiency would increase, without a commensurate rise in real oil prices.

This is a very overt and logical market manipulation for a resource that is critical to national security.

I would never advocate the same scenario with any other resource which was not a fundamental key to our economy and where the largest reserves of which were located in a geographic region generally hostile to the United States.

The point is, you are going to get $80 a barrel anyway. Why not have the money stay in the country?

Now, if those are anyone's talking points, please feel free to refute the logic.


18 posted on 03/04/2005 6:55:02 AM PST by Einigkeit_Recht_Freiheit (Patriotism: you love your own people first; Nationalism, you hate people other than your own first.)
[ Post Reply | Private Reply | To 14 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson