I’ve been reading and listening to people discuss the whole idea of reducing overall gasoline prices by removing the gas tax for the summer travel season.
I do think it is a bunch of political talk without any basis in economics or in solving the actual problem.
Let’s look at supply and demand: As long as demand is outstripping supply, prices will go up. The price will continue to rise until other options become more feasible. At what price do we walk or ride a bike or carpool or not let the car sit and idle while waiting for someone?
A what price do we sell our homes out in the suburbs and move closer to our jobs or move to where there is public transit? When does that become feasible?
Is it $10 a gallon? $20? At what number do we change the way we live?
Just yesterday, I saw people in their cars with it running while waiting for someone. They must have won the lottery and can burn gas willy nilly.
