Dem congress jumps to action on oil spill............Will quadruple gas tax (gas prices, generation)

[le roi]

well, you tax things you want less of, and you subsidize things you want more of.

Do we want to use less fossil fuels? I would say yes.

[Toyman at Jewel Lake]

Never let a good crisis go to waste....

[Pretzelogik]

tax and spend is that not the answer to everything?

[HoldTheBeans]

Who wants to use less with no legitimate replacement? Not me. Get something that can replace coal in power plants and oil in everything for the same approx price and get back to me.

[le roi]

Originally Posted by HoldTheBeans

Get something that can replace coal in power plants and oil in everything for the same approx price and get back to me.

Easy. Tax oil and coal until solar, wind, and nuclear are cheaper alternatives.

It ain't rocket science.

[HoldTheBeans]

That is the stupidest thing I've ever heard.

[le roi]

Originally Posted by HoldTheBeans

That is the stupidest thing I've ever heard.

Well, you see, we got this thing called the "market".

In this market, you have "prices". Are you familiar with prices? It is sort of like a measure of value.

[HoldTheBeans]

In this country there are people with stupid ideas. Are you familiar with stupid ideas? Talk out loud and you'll get one.

[le roi]

Originally Posted by HoldTheBeans

In this country there are people with stupid ideas. Are you familiar with stupid ideas? Talk out loud and you'll get one.

I take that as a "no".

These prices have a relationship with supply and demand. A marginal tax on consumption will shift the demand curve to the left; when other things remain equal, this will increase the price paid by consumers and decrease the price received by sellers. When you increase these prices, the consumer (whether this is the driver of an automobile or the CEO of an energy company) will seek out alternatives (substitutions) to whatever is being taxed.

Which brings me to my next question: Have you ever heard of "alternative energy" ? Not all energy is derived from fossil fuels. Some countries even have big turbines that turn in the wind, and large panels that convert energy from the sun into electricity. This electricity can even be stored, for use in automotive transportation. You will learn more about it when you reach the eighth grade.

[subsound]

Wow, it's terrible. A possible increase to $0.01 per 2 gallons of fuel I pump..that is going to bankrupt me completely.

Oh woe is me, it's so awful. Somebody else should pay for the damage and clean up of the oil, not those who use it.