Proposal For Gas Price Hike

Even though this topic isn't as hot as it used to be in the summer when gas was in excess of $3.00 a gallon, the issue of increasing gas prices due to supply in the middle east is still an economic issue, and an environmental issue that must be dealt with.

While on one of my 30 minute commutes to work this summer, I thought up a way to help reduce the gas price. The last time I've taken an economics class was in 10th grade, so if I have some stuff wrong, let me know.

Back when World War II was going on, there were many limitations to what people could buy and purchase, because some materials were needed more for the military. These commodities were viewed as not necessary, butter, nylons, metal, ect. In our present day, even though alot of people disagree with it, we are at war in Iraq. People complain about how high gas prices are, but they don't complain how much they have to drive.

Since we are in a time at war, I say that the government subsidizes gas quantities to American's based on their need, such as going to work, picking up kids and other necessary activities that require driving. Anything in excess of the necessary driving requires purchasing gas that is not subsidized, and puts tax increase on addition gallons of gas purchased.

In doing this, it would make American's think more about their mass consumption of gas more since they would have to pay more for their non-necessary travel.

It would also encourage American's to get more fuel efficient cars, and not gas guzzling SUV's, or find other means of transportation that is more environmental and economically friendly.

This would indefinitely decrease the amount of gas consumed, thus increasing the supply and decreasing the price (I think that's how it goes).

Eh, but what do I know, I'm just a college student that rides his bike everywhere

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View Comments ( 0 ) | Add Comment Posted on:11/04/2006 by Tom Wilson

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