Gasoline @ MindSay 
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Gas Tax Holiday? No Thanks.
So, what I've read about the Gas Tax Holiday proposal by McCain and Clinton pretty much says that very little savings would be passed on to the consumer. And, in fact, may actually benefit the gas companies! What the Heck? Apparently, Clinton and McCain are not listening to the elitist economists, with their math and learning, who almost unanimously agree that both plans are pointless and costly.
Here are some quotes:
"The advocates of a "gas tax holiday" are exaggerating the benefits to consumers from their proposal. If the Illinois experience is a guide, there is likely to be some reduction in the price of gas, but it would fall well short of the size of the tax reduction. In order to pay for the tax cut, the government would have to cut back on highway construction and maintenance or find some other way of plugging the shortfall in revenues to the Highway Trust Fund."
"There's another catch to the McCain and Clinton proposals. Currently, the gas tax is deposited directly into the Highway Trust Fund, which is used to pay for upgrades to roads and bridges. The American Society of Civil Engineers estimates that the three-month gas tax holiday could cost as much as $8.5 billion.
McCain has responded by pledging to fund the Highway Trust Fund out of general revenues. That, of course, means adding another $8.5 billion in federal debt, which in turn means adding as much as $383 million per year in interest payments."
"Clinton campaign spokesperson Geoff Garin said in a conference call this week that the proposal would save each driver $70. The Clinton campaign did not respond to our request to clarify how it arrived at that figure. But the non-partisan American Association of State Highway and Transportation Officials estimates that the total savings for the average American motorist works out to about $28; for a two-car household, that would be $54.
That's IF prices actually dropped 18.4 cents per gallon. However, there's every indication that they wouldn't. Here's why: According to the basic principles of supply and demand, cutting the price of an item causes people to buy more of it."
"For all the legislative prowess of McCain and Clinton, we’re doubtful that either candidate can rewrite the laws of supply and demand. That 18.4 cents per gallon won't go to consumers. Instead, the proposal will simply shift that money from government coffers to the oil companies. We're willing to grant that if the laws of economics themselves took a holiday and the price did drop that much, the amount saved might be meaningful to many motorists, particularly those who are low-income and those who drive a lot. And there would likely be all kinds of ancillary benefits involving price reductions for food and other products that have to be transported, as well as airline tickets and the like.
But we can't find any economists who think we'll actually see that drop in the price of gasoline. Others have tried and failed as well. And the Clinton campaign hasn't produced one, either."
"Another economist, Jeffrey Perloff, of UC-Berkeley, agreed that a federal tax moratorium would likely have less impact on consumer gas prices than a state moratorium. He said his models showed that a suspension of the 18.4-cent federal tax on gasoline would likely result in a temporary 9- to 12-cent reduction in the cost of a gallon of gas to the consumer, with the remainder of the reduction coming in wholesale prices."
"The Obama campaign says that's a key reason why he opposes McCain's plan: there is no mechanism to make sure that consumers, rather than oil companies, reap the benefits of the tax holiday.
Here are some quotes:
"The advocates of a "gas tax holiday" are exaggerating the benefits to consumers from their proposal. If the Illinois experience is a guide, there is likely to be some reduction in the price of gas, but it would fall well short of the size of the tax reduction. In order to pay for the tax cut, the government would have to cut back on highway construction and maintenance or find some other way of plugging the shortfall in revenues to the Highway Trust Fund."
"There's another catch to the McCain and Clinton proposals. Currently, the gas tax is deposited directly into the Highway Trust Fund, which is used to pay for upgrades to roads and bridges. The American Society of Civil Engineers estimates that the three-month gas tax holiday could cost as much as $8.5 billion.
McCain has responded by pledging to fund the Highway Trust Fund out of general revenues. That, of course, means adding another $8.5 billion in federal debt, which in turn means adding as much as $383 million per year in interest payments."
"Clinton campaign spokesperson Geoff Garin said in a conference call this week that the proposal would save each driver $70. The Clinton campaign did not respond to our request to clarify how it arrived at that figure. But the non-partisan American Association of State Highway and Transportation Officials estimates that the total savings for the average American motorist works out to about $28; for a two-car household, that would be $54.
That's IF prices actually dropped 18.4 cents per gallon. However, there's every indication that they wouldn't. Here's why: According to the basic principles of supply and demand, cutting the price of an item causes people to buy more of it."
"For all the legislative prowess of McCain and Clinton, we’re doubtful that either candidate can rewrite the laws of supply and demand. That 18.4 cents per gallon won't go to consumers. Instead, the proposal will simply shift that money from government coffers to the oil companies. We're willing to grant that if the laws of economics themselves took a holiday and the price did drop that much, the amount saved might be meaningful to many motorists, particularly those who are low-income and those who drive a lot. And there would likely be all kinds of ancillary benefits involving price reductions for food and other products that have to be transported, as well as airline tickets and the like.
But we can't find any economists who think we'll actually see that drop in the price of gasoline. Others have tried and failed as well. And the Clinton campaign hasn't produced one, either."
"Another economist, Jeffrey Perloff, of UC-Berkeley, agreed that a federal tax moratorium would likely have less impact on consumer gas prices than a state moratorium. He said his models showed that a suspension of the 18.4-cent federal tax on gasoline would likely result in a temporary 9- to 12-cent reduction in the cost of a gallon of gas to the consumer, with the remainder of the reduction coming in wholesale prices."
"The Obama campaign says that's a key reason why he opposes McCain's plan: there is no mechanism to make sure that consumers, rather than oil companies, reap the benefits of the tax holiday.
So on this point — how Obama voted in 2000 — the RNC glosses over an important detail. Yes, he voted for the tax holiday the first time, but he opposed an extension of it because he said consumers weren't getting the benefit."
Fighting Rising Fuel Prices
It's time to take calculated and determined steps to show our disgust and distrust for the inexcusable rise in gasoline prices at a time when oil companies are showing record profits!
Maybe its time to boycott some industries? While auto manufacturers are slowing improving gas mileage in new cars, its still not enough. Put off plans to purchase any new cars for now. Fix up the one you have now and hold on.
When going on vacation try to get around with available public transportation, walk or bicycle. Don't rent a car!
Cut up those gasoline credit cards and mail back the peices to their respective companies! Stop paying interest on gasoline credit cards and high fuel prices too!
Barrack Obama - Hope for America?
The price of gas is a total ripoff. Oil companies are making billions in record profits while consumers are fleeced. The price of everything is going up. The USA is in recession, millions of people are losing their homes. The US dollar is becoming monopoly money. We are mired in a war in Iraq that is costing us a fortune every day, and weakening our thinly stretched armed forces. All thanks to George.
It is pretty clear that Barrack Obama will be elected President in November. He'll get us out of Iraq, and make huge changes in America that are long overdue. He'll be like no other President in history, that's for sure. We can expect policies that will respect the environment, something we truly need today. Obama represents hope and change for the future, something the other candidates do not offer.
I'm endorsing Obama as my choice.
It is pretty clear that Barrack Obama will be elected President in November. He'll get us out of Iraq, and make huge changes in America that are long overdue. He'll be like no other President in history, that's for sure. We can expect policies that will respect the environment, something we truly need today. Obama represents hope and change for the future, something the other candidates do not offer.
I'm endorsing Obama as my choice.
This much is certain...
One of the gas station/convenience store chains popular in East Tennessee is Weigel's. The one closest to where I live has been renovating.
Today they installed one of those gas price signs that has the electronic display and will thus not require changing the numbers by hand. With gas prices fluctuating so much these days (maybe they should have four number panels instead of just three for when gas climbs to 10.00 or more per gallon) it might make sense.
With the uncertainty of gas prices there is one thing they seem pretty certain about: gas will always cost that extra 9/10ths of a cent. After the electronic panels there's that little tiny 9 right on the sign and with no room to change.
Lesson: No matter what price gasoline goes up to, they'll always be willing to charge you nearly one penny more.
Today they installed one of those gas price signs that has the electronic display and will thus not require changing the numbers by hand. With gas prices fluctuating so much these days (maybe they should have four number panels instead of just three for when gas climbs to 10.00 or more per gallon) it might make sense.
With the uncertainty of gas prices there is one thing they seem pretty certain about: gas will always cost that extra 9/10ths of a cent. After the electronic panels there's that little tiny 9 right on the sign and with no room to change.
Lesson: No matter what price gasoline goes up to, they'll always be willing to charge you nearly one penny more.
Another Bold Incoherent Rant
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Date Line November 3, 2007
Ah yes the days of Jimmy Carter and gasoline lines have returned.
Wait! What! HUH!? Gas prices are $3.06 at the pump, $100 a barrel, and there is no panic in the streets? No hoarding? No syphoning the fuel tanks of parked cars? No international energy shock?
What happened?
Oh right. The Right-wing happened.
Oh the beauty of being able to explain to the ignorant why this can be blamed on George W and his Right-wing Conservatives – you know, de guys who will loose the Whitehouse only to retain veto power over Capital Hill and all that the new prez will seek to do.
How does this work? It isn’t just the destruction of the Iraq oil fields and depriving the world economy of the second biggest proven oil supply. Nope. Not just that – that was factored into prices a few years ago; that was factored in when prices last reached these levels while per barrel prices remained significantly lower.
Today’s cost is the effect of George’s policies pushing down the dollar and so causing a rise in the per barrel price for America and not the rest of the world.
Yep! Only those nations who use the dollar, are linked to the dollar, feel the effect of the rise in barrel prices as the value of the dollar falls.
Per barrel oil prices are inverse to the value of the dollar on foreign exchange markets. Pity poor China – their Juan is pegged to the US Dollar. But China can afford it – they’re richer than America; or why else would they be able to lend us all that money?
George, and his lack-of-brain trust, wants China to all float the Juan. It would make American goods cheaper in China, and make Chinese goods more expensive here.
The idea is, China’s stronger Juan would be able to buy more products made here. DUH. They are sufficiently rich to become our creditor, and lend us money, they can afford to buy anything they want from us.
Float the Juan and it will move with European markets, might well get cheaper against the Euro – it might get stronger. Does it matter? A strong Juan – one moving opposite to the Dollar – can buy more European goods. While the weaker Dollar would find it more costly to buy anything from anyone.
The flaw in the Bush idea (as if all his ideas were not flawed) is that China can buy from America; but America is a service economy and has boasted that fact. America even out-sources a major portion of its service economy. You know! Those customer care people in India.
We are an economy which buys its food from other nations, gets its energy from other nations, gets its work force from other nations (legally for the high end workers, “illegally” for the peons who cross our boarders to fight our forest fires and work the few remaining fields in the southwest and California) – YEP! We have a service economy serving those who produce nothing.
Our cars are made in Mexico and Canada – unless the plant is owned by Germany or Japan. Everything is from away. And gee ... it was a Republican idea to promote the policies which exported our factories and imported their products. Reagan Republicans boasted of it.
We have oil fields. We could deplete them – as the GOP wants – and then the process would be completed. We could deplete the oil fields in under a decade – in a few months if we went 100% self-reliant.
Once depleted we become 100% reliant on foreign fuels – the oil we stopped from being pumped in Iraq and which the Islam-fascists will control. Bush will have achieved the Christian Conservative agenda – he will have spawned World War Three. And gee wiz willy curs ... without energy, manufacturing capacity, or even skilled workers to mobilize, we cannot win. The Evangelicals will get their Armageddon and everyone will wonder at the lack of Rapture.
Conservatives (Islamic and Evangelical) have a single and common agenda – destruction of America. Sit back and enjoy – its your vote.
_____________________________________________________ Wait! What! HUH!? Gas prices are $3.06 at the pump, $100 a barrel, and there is no panic in the streets? No hoarding? No syphoning the fuel tanks of parked cars? No international energy shock?
What happened?
Oh right. The Right-wing happened.
Oh the beauty of being able to explain to the ignorant why this can be blamed on George W and his Right-wing Conservatives – you know, de guys who will loose the Whitehouse only to retain veto power over Capital Hill and all that the new prez will seek to do.
How does this work? It isn’t just the destruction of the Iraq oil fields and depriving the world economy of the second biggest proven oil supply. Nope. Not just that – that was factored into prices a few years ago; that was factored in when prices last reached these levels while per barrel prices remained significantly lower.
Today’s cost is the effect of George’s policies pushing down the dollar and so causing a rise in the per barrel price for America and not the rest of the world.
Yep! Only those nations who use the dollar, are linked to the dollar, feel the effect of the rise in barrel prices as the value of the dollar falls.
Per barrel oil prices are inverse to the value of the dollar on foreign exchange markets. Pity poor China – their Juan is pegged to the US Dollar. But China can afford it – they’re richer than America; or why else would they be able to lend us all that money?
George, and his lack-of-brain trust, wants China to all float the Juan. It would make American goods cheaper in China, and make Chinese goods more expensive here.
The idea is, China’s stronger Juan would be able to buy more products made here. DUH. They are sufficiently rich to become our creditor, and lend us money, they can afford to buy anything they want from us.
Float the Juan and it will move with European markets, might well get cheaper against the Euro – it might get stronger. Does it matter? A strong Juan – one moving opposite to the Dollar – can buy more European goods. While the weaker Dollar would find it more costly to buy anything from anyone.
The flaw in the Bush idea (as if all his ideas were not flawed) is that China can buy from America; but America is a service economy and has boasted that fact. America even out-sources a major portion of its service economy. You know! Those customer care people in India.
We are an economy which buys its food from other nations, gets its energy from other nations, gets its work force from other nations (legally for the high end workers, “illegally” for the peons who cross our boarders to fight our forest fires and work the few remaining fields in the southwest and California) – YEP! We have a service economy serving those who produce nothing.
Our cars are made in Mexico and Canada – unless the plant is owned by Germany or Japan. Everything is from away. And gee ... it was a Republican idea to promote the policies which exported our factories and imported their products. Reagan Republicans boasted of it.
We have oil fields. We could deplete them – as the GOP wants – and then the process would be completed. We could deplete the oil fields in under a decade – in a few months if we went 100% self-reliant.
Once depleted we become 100% reliant on foreign fuels – the oil we stopped from being pumped in Iraq and which the Islam-fascists will control. Bush will have achieved the Christian Conservative agenda – he will have spawned World War Three. And gee wiz willy curs ... without energy, manufacturing capacity, or even skilled workers to mobilize, we cannot win. The Evangelicals will get their Armageddon and everyone will wonder at the lack of Rapture.
Conservatives (Islamic and Evangelical) have a single and common agenda – destruction of America. Sit back and enjoy – its your vote.
_____________________________________________________
Post Script: Expect OPEC to get smart – closet Islam-Fascist that they be – and in a few years, give the new president a gift; they will peg gasoline to the Euro. Europeans will cheer having been given the opportunity to divest through attrition and everyone will watch as the American economy quietly sinks into history.
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Re: OH MA GA!....I found this on my friend fabs blog...this is: - ) You're such a good kiddo.
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