Gas goes up again
Perhaps this is because there isn't much constructive anyone can do, absent an effective long-term national strategy.
For all the fuming about prices that, last weekend, hit $3.05 a gallon on average in Utah and continue to climb, it is important that lawmakers not depart from common sense. A lot of average folks seem oblivious to basic economic principles, but even when it concerns something that seems as arbitrary as the oil industry, those principles hold true.
Should lawmakers pass windfall taxes on the industry? First, they would have to define what constitutes a windfall versus a respectable profit, bearing in mind that many other businesses in other industries do quite well at consumers' expense. Then, ultimately, they would have to deal with the fact that windfall taxes either would get passed onto consumers or affect the supply of gasoline.
Should lawmakers try to impose price controls? This would interfere directly with supply and demand. Remember the 1970s? Artificial price controls back then resulted in long lines at pumps and shortages. It also kept the nation from aggressively pursuing alternatives that might have taken the nation out of OPEC's grip. Prices rise and fall to regulate demand and to stimulate competition.
A lot of man-on-the-street interviews in recent days have asked how much consumers would pay before deciding to take a bus or ride a bike instead. The answers have varied, but many people put the ceiling at $4 a gallon or so. And that demonstrates a big part of the problem.
Americans are having to pinch their budgets to pay for gas, but the demand has yet to decline. Until people decide to drive less, expect prices to rise every year when vacation season starts, or when other factors, such as refinery fires or natural disasters, get in the way. Expect to read about oil industry profits.
Unlike many other segments of a free-market economy, gasoline is a necessity. As prices rise, they affect the prices of all goods that must be transported. They cause people to shun suburban homes and move closer to cities and mass-transit lines.
It isn't quite true to say nothing constructive can be done. The ultimate answer lies in a strong national policy geared toward developing alternative fuels and requiring tougher fuel-efficiency standards. So far, however, we haven't seen many presidential candidates pick up that cause.
Comments
- Kirk Douglas classic on DVD 11:38 a.m.
- Zion fire moving southeast 11:36 a.m.
- More school-money than expected 11:24 a.m.
- Virginia 'Freedman's' project done 11:12 a.m.
- Teen relive Mormon trek 11:12 a.m.
- Oldest American to scale Mount Everest 11:07 a.m.
- Knicks sign first-round pick 10:59 a.m.
- Armstrong third, Leipheimer fourthe 10:58 a.m.
- 6.0 quake in China 10:43 a.m.
- Big Ben celebrates 150 years 10:42 a.m.
- Jazz brass debate Millsap match
- LDS seminary principal arrested
- 2 men cited on LDS plaza
- Jazz finances not quite so bleak
- HBO defends U. logo use in 'Love'
- Reactions on Boozer speculation
- Cash for Clunkers to get rolling soon
- Utahns among Texans' investors
- Man spots his stolen car
- Jazz rookies quiet Thunder youngsters
- LDS seminary principal arrested
244 - Jazz brass debate Millsap match
157 - Bronco collecting a galaxy of recruits
141 - Jazz talking Boozer trade?
139 - Blazers may offer Millsap a contract
124 - 2 men cited on LDS plaza
114 - Stadium of Fire flag burning was fake
96 - Fairness of BCS debated
81 - Chaffetz eyes challenging Bennett
76 - Letters: Single-payer system best
75
By now you've probably read about the investigation that showed just how...
Sen. Scott Jenkins was name-checked by Jay Leno Monday night during his...
Good for Milsap, but whatever he does, he's got to get rid of this Ara...
no one griped last year when millie was getting paid 700.000. jazz could have...
I have always thought we invaded Iraq out of boredom; the 50 united states...
To the 3:37 commentator, Actually the 12:07 commentator was doing a lot...
Hey Kent- First of all, the Stadium of Fire is NOT a BYU production. ...
Leave him where he is and make him work or pay to stay there.
And let's put the blame where it all belongs....on Hedo. If he hadn't...
Just when you think Utah could not possibly get any more ridiculous,...
To the 10:51 commentator, Did I say he should not be on the sex offender...
To CJ3: How many centers out there really are their teams toughest post...



You can be the first to comment on this story.