Friday, September 23, 2005

Good medicine always taste bad

With gasoline prices around $3 a gallon, I am searching for relief just like everyone else. I have noticed that I am not the only one driving 60 mph. Now I see at least half of the cars on my commute driving 60 mph instead of 70 mph. When gas topped $2.25 a gallon I slowed to 60 mph but it was not until gas rose to $3 a gallon did I see 50% of the other drivers doing the same. By staying home on my off days, combining my trips and driving 60 mph I have cut the amount of gasoline I buy each month by 25% to 30%.
This may sound crazy but maybe gasoline prices should stay at $3 a gallon. It will reduce what consumers buy elsewhere, undercut growth and face people to think twice before driving. The best medicine would be a gasoline tax increase but that ideal is considered political suicide. A flexible tax keeping the price of gasoline at $3 would not be so bad. Taxes can change long term behavior as long as tax payers believe the levies are here to stay. A gasoline tax increase now would be well timed. The economy is still expanding and consumers already have confronted the shock of $3 a gallon gasoline. The real purpose of such medicine is to make the US economy less dependent on energy and therefore less sensitive to spikes in energy prices. This medicine would taste bad. It is not as simple as take two aspirin and call me in the morning. I can just hear my mother say " Here take this medicine, now swallow this ". I would shake my head from side to side but finally open up my mouth and down the hatch the medicine would go. I would always ask her " How long do I have to keep taking this stuff, it taste bad " Her answer was always the same " Till you get better".

1 comment:

  1. Anonymous7:46 PM

    Good!! I'll ride my bike to the store.

    D

    ReplyDelete

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