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Red Zelda Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-08-07 11:31 AM
Original message
DU this oil poll
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ayeshahaqqiqa Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-08-07 11:33 AM
Response to Original message
1. 35% say alternative cars; 25% say nationalize oil industry! n/t
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tubbacheez Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-08-07 11:33 AM
Response to Original message
2. None of the choices are any good. n/t
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Kelly Rupert Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-08-07 11:34 AM
Response to Reply #2
5. What would you do?
Just curious.
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tubbacheez Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-08-07 12:44 PM
Response to Reply #5
11. Since you asked...
The question asks for a "real remedy" for high gasoline prices, which I interpret as asking how to decrease gasoline prices significantly and indefinitely.


This is macro-economics problem. Increasing supply and/or decreasing demand would do it. Convincing everybody to drive less and eat more locally grown food is one implementation of that idea. But we would have convince almost everybody. If a portion of the population causes a price drop, but another portion seizes the opportunity to buy more gas at the cheaper price, nothing will change. Less for us simply means more for them.






Here's why I didn't like the offered answers:

Nationalizing the oil industry moves the profits elsewhere, but the profits presumably remain in place. Spending them on healthcare is fine and dandy, but would be unrelated to the retail cost of gas (unless one establishes some connection, e.g. a discovery that healthier people drive less).

Cutting taxes on oil companies would simply increase their profit margin. Since the market is still buying the same amount of gas at today's prices, a true application of free market theory would predict no drop in retail price.

Eliminating all taxes on gas is just a variant of the above idea. With zero burden from government, the free-market theory operates in its most efficient mode. Since there is plenty of demand for existing supply at existing prices, no price drop would occur. The supply chain will adjust profit margins to keep prices as is, or higher.

Increasing gas taxes and investing in alternative fuels and rapid transit has some merit. It may drop gas demand enough to drop prices initially. However, this drop will disappear the following week if new demand fills in the gap. Our cities and suburbs were designed around the assumption of cheap personal transportation, so mass transit will only get slightly more attractive with increased investment. Alternative fuels for personal transportation have come a long way, but don't seem ready to meet the demand for gasoline just yet.

Requiring car-makers to improve fuel efficiency also has merit. But again, people might just drive more, thus keeping demand constant, thus keeping prices constant.

Removing environmental restrictions gets the same analysis at elimination of taxes. Absence of government simply causes supply and demand to equalize that much more efficiently. I see no indication this idea alone will equalize gas prices at a lower level. If anything, prices will increase as people gain greater latitude, thus increasing demand.

Taking over the Middle East would serve to ensure Americans, and no one else, get the last of the easy-to-extract oil. Again, demand is unaffected. Supply is not necessarily increased, though. Even if America owns the oil fields, the oil companies still control how much gas is on the market on a week-to-week basis. Refineries are operating at (or near) maximum capacity already. Unless this idea is combined with building more refineries, there will be no lasting drop in prices.







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Kelly Rupert Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-08-07 02:44 PM
Response to Reply #11
13. Good thoughts all.
Thanks.
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leftofthedial Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-08-07 11:34 AM
Response to Original message
3. done
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Kelly Rupert Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-08-07 11:34 AM
Response to Original message
4. Several decent options.
I went with "Require manufacturers to produce more fuel-efficient vehicles," as that would do the most good for oil prices short-term.
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rosesaylavee Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-08-07 11:35 AM
Response to Original message
6. Naturally, 'take over the ME' is the correct answer...
The best real remedy for soaring gasoline prices is: Nationalize the oil industry and invest the profits in health care.
26.8%

Cut taxes on oil companies and let the market rule.
2.4%

Take away all the taxes on gasoline purchases.
12.2%

Increase gas taxes and invest the money in alternate fuels and rapid transit.
4.9%

Require manufacturers to produce more fuel-efficient vehicles.
36.6%

Remove environmental restrictions on cars and oil producers.
4.9%

Take over the Mideast.
12.2%

votes: 41

(and just in case, :sarcasm:)
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sinkingfeeling Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-08-07 11:35 AM
Response to Original message
7. Where's the put excess profit taxes on the oil companies and use the collected revenue to
fund alternate energy?


BEAVER COUNTY TIMES ALLEGHENY TIMES - READER POLL


The best real remedy for soaring gasoline prices is: Nationalize the oil industry and invest the profits in health care.
27.3%

Cut taxes on oil companies and let the market rule.
2.3%

Take away all the taxes on gasoline purchases.
11.4%

Increase gas taxes and invest the money in alternate fuels and rapid transit.
4.5%

Require manufacturers to produce more fuel-efficient vehicles.
38.6%

Remove environmental restrictions on cars and oil producers.
4.5%

Take over the Mideast.
11.4%

votes: 44


Thank you for voting!

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Kelly Rupert Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-08-07 11:36 AM
Response to Reply #7
8. I'm guessing that one is
"Increase gas taxes and invest the money in alternate fuels and rapid transit."
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sinkingfeeling Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-08-07 11:47 AM
Response to Reply #8
9. I took that to mean adding additional federal tax per gallon to the consumer.
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Kelly Rupert Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-08-07 02:38 PM
Response to Reply #9
12. That's undoubtedly what it meant,
but seemed close enough for me to pick it. Still, I agree that taxing the company directly would be preferable.
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IDemo Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-08-07 11:56 AM
Response to Original message
10. The correct answer is #8
Drive and consume less.
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