| Is There Any Answer for Higher Gas Prices? |
| Tuesday Apr 29, 2008 |
| Staff of gfn.com |
|
The price of gas this week hit a high of nearly $4 a gallon, alarming every American, including those in urban areas who don't drive a car on a regular basis. Our palpable national outrage prompted President Bush to speak to the nation via a press conference Tuesday morning. Unfortunately, when he took questions from reporters, three things became apparent: 1. Mr. Bush is pinning his hopes on lower energy costs based on drilling for more oil; corn-based ethanol; and the building of more nuclear power plants. If you've been following Mr. Bush's rhetoric, you already know these are not new ideas; they also not popular ideas. 2. Mr. Bush blames the gas problem on Congress, and nowhere else. Not on the oil companies, who set their own prices (and record unprecedented profits), and not on foreign oil, but Congress, who has not, he lamented, followed his plan for building more nuclear power plants and have not authorized more drilling. 3. Mr. Bush has no plan for immediate relief for reducing gas prices. None. When more than one reporter asked if he would consider temporarily removing the 18-cent gas-pump tax, he demurred, and again blamed Congress for the current situation, sidestepping the question entirely. 4. Mr. Bush brushed off the idea of alternative energy sources, except for corn-based ethanol, an idea he repeated mantra-like throughout the press conference. Even fellow Republicans, like John McCain, are suggesting relief in the way of a so-called summer "gas-tax holiday" -- which would extend from Memorial Day to Labor Day. Indeed, Hillary Clinton is in favor of this temporary relief. But Clinton, unlike McCain, has a plan to pay for the gas tax suspension - by imposing a "windfall profits tax" on oil companies, an idea sure to be popular with the general public, but not with Congress who has a long history of pandering to Big Oil. Mr. Obama, however, rejected the gas-tax holiday idea as a "gimmick" and asked, perhaps appropriately, "Where's John McCain's been for the last 25 years? What has he been doing to promote clean energy and to increase fuel efficiently standards?" The questions are fair, but as the in-fighting continues, the rest of us are left suffering at the pump. Once again, without the proper leadership, policies and realistic longterm solutions, the American public is left to their own devices ... and remedies. On this score, there are plenty of experts who are suggesting ways to keep gasoline expenses down, and it would appear to be an ideal time to review some of those ideas. Let us first dispense with the popular Internet notion of a national one-day or one-month boycott to drive down the price of gas: it won't work, say experts. These kinds of boycotts don't reduce the overall demand for gas and so don't affect price, noted economist Steven D. Levitt, author of "Freakonomics." Instead, here are a few ideas (and the reasons behind them) you might not have taken seriously: |
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