Annie Says “NO!” To Raising Gas Prices Instead of “Clunker Cash”

Raising gasoline tax and road toll fees to reduce the use of fossil fuel would be taxing Americans to control and manipulate their behavior. I SAY NO!!!!

Jeffrey A. Miron, senior lecturer in economics at Harvard University and a senior fellow at the Cato Institute, a think tank that promotes libertarian views, said in a piece for CNN, “Attempts to reduce the use of fossil fuel should focus on two different policies: higher gasoline taxes and increased tolls on highways. If gasoline costs more, everyone faces an incentive to drive less.”

While I agree with much of what he said, increasing gasoline prices right now is a no-no. That just adds hardship to the people who are running low on money. The lucky ones still have to get to work. The others have to keep looking for a job.


Don’t get me wrong! I am not in favor of “Cash for Clunkers.” The government spent $1 billion of our money in four days. Now we’re waiting to see if the Senate will approve another $2 billion. Apparently a lot of the car buyers who took advantage of the program would have purchased new cars anyway — because they had the credit or the cash. Others who are sporting new wheels intended to continue to drive the cars they traded in for another year or two because they weren’t really “clunkers.” They were working fine but not offering the gas mileage the government is promoting.  Yes, there are some people who really had clanking clunkers.

We already have reduced gas consumption according to the Energy Information Administration of the U.S. Government. Consumption is down for all grades, regular, midgrade and premium. And the truth is — troubled states may be looking at hiking gas tax, especially California already encumbered with the highest gasoline prices in the nation – including a tax of about 40 cents per gallon plus the highest state sales tax.

Miron has some valid points — that scapping all used cars traded in on the “Clunker” program is a waste. A lot of these cars are in good working order and have economic value. And scrapping old cars takes energy. He also pointed out that many who traded in their cars were planning on upgrading to more fuel efficient cars and trucks in the next year or two anyway.

Then there is the fact that car dealers are complaining about how this program is being administered. I hear the paperwork is outrageous and can take hours for one deal. The web site that dealers use for input had crashed. Some dealers are said to be pulling out of the program because they are concerned they will not be reimbursed for the vouchers they are receiving from the government for each clunker trade in. Ya think? By the way, how much is the administration of “Cash for Clunkers” costing us? I heard Citi Bank is involved. Is this true?

I really think Americans, regardless of personal finances, are re-programming themselves to a new kind of personal economy. We are learning that we don’t have to gorge ourselves on more of everything. I know I am. We are discovering that we can have fun without "things". We are enjoying bargains and learning that just because something costs less, doesn’t mean its quality is less, it doesn’t look as good or it doesn’t as well.

Your comments? Want Cash for Clunkers to continue? Think gas prices should go up to curb the use of fossil fuel? Any really good ideas? SCROLL DOWN TO LEAVE YOUR COMMENTS AND THANKS!

 
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