Sunday, May 22, 2011

The problem with rubber meeting road

In general, high gas prices are a good thing, in that they partially internalize the externalities of driving. But in the middle of a recess... (ahem, recovery), they create a real problem--the people who can least afford them are hit particularly hard by them. I am glad that at least the payroll tax was cut, but it would have been better for the cut to have been targeted.


Mobile Real Estate Services said...

Your entry exemplifies a view I believe few North Americans understand. People want lower gas prices, now. However, these people do not take into account the long term effects and costs of gasoline. Governments could make efforts to control gas prices, but I would argue that is not the answer. The accessibility and programs which assist citizens in paying market prices are more important.

Unknown said...

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