Eliminate Mileage Mandates

SEARCH BLOG: GASOLINE

Several posts on this blog discuss the cost of gasoline and the government's role in creating market problems and then creating bureaucracies to "manage" the problems it helps to create.

So far, the two main issues have been:

• Restricting drilling for oil and natural gas forcing the U.S. to be more reliant on foreign sources of energy
• Expanding government regulations regarding automobile mileage and CO2

Now that it is obvious to everyone that the government has no intention of letting market forces act as the agent of change, it is time for the government to quit pussy-footing around and do what is done in Europe: add taxes of $3 or more per gallon of gasoline. At that point, all other government actions... mileage and CO2 regulations, restrictions on drilling for oil, and subsidies for alternative fuels... will be moot and can be eliminated because the cost of implementing the government's policies will be borne directly by consumers without the government being able to divert attention and blame to vehicle manufacturers and oil companies.

The marketplace would immediately react by making a run on the smallest possible vehicles available... like these [click images for source].



The U.S. would be like Europe... or California.

Now that would be a blow to politicians who would have to stand up to their constituents and explain why the government has to be involved at all in the marketplace. It would also create issues with regard to why many other taxes would have to remain in force [and the supporting bureaucracies]. It would also highlight issues with regard to the plethora of regulations that create additional costs for manufacturers and consumers.

Cost of gasoline
(U.S. Dollars per Gallon)
Date___ Belgium France Germany Italy Netherlands UK _ US
4/20/98 3.43___ 3.44__ 3.25___ 3.48_ 3.56_______ 4.04 1.21
4/21/08 8.62___ 8.34__ 8.58___ 8.32_ 9.51_______ 8.17 3.73

Look at tax opportunity! Gas is practically being given away in the U.S.

Of course, our government would do exactly what those in Europe do... raise the taxes and keep all of the onerous regulations. That's what governments do best.

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