| Re: Barack and gas price gimmicks |
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Group: or.politics · Group Profile
Author: BaxterBaxter Date: May 14, 2008 12:03
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"Don Homuth" < dhomuthoneatcomcast.net@> wrote in message
news:m43m24hhvk930vch1jkjvvv4f9kqcs1t5e@ 4ax.com... > On Tue, 13 May 2008 19:03:51 -0700 (PDT), lein
> my-deja.com> wrote:
>>>he calls suspending the tax a gimmick because the savings will be
>>eaten up by the gas companies raising prices.
>
> It is a gimmick, and that outcome is both predictable and reasonable.
>
> If the optimal Price Point is something otoo US$3.50/gallon (the point
> where the elasticity curve has a sharp break, such that consumption
> declines), then that's where the awlbidniss will set the price.
>
Actually, that's a good case for -raising- the gas tax
-- the oil companies
will absorb the tax because to raise the price would lower volumes
significantly and thus lower profits drastically. Meantime, we'd get roads
and bridges fixed.
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