As gasoline prices have plummeted, the economy has taken off. Coincidence? AAA has stated that the drop in gasoline prices will save consumers $75B in 2015.
This is an ideal issue to frame in terms of tax and energy policy. Follow below the Orange Croissant for further discussion.
As gasoline prices have plummeted, the economy has taken off. Coincidence? AAA has stated that the drop in gasoline prices will save consumers $75B in 2015.
This is an ideal issue to frame in terms of tax and energy policy. When you look at the effects of an oil price drop, it is like a huge tax cut targeted at working families, because of the high share of their income that goes to transportation. And, given the high marginal propensity to consume of working families, that means that tax cut goes right into additional consumption of OTHER things besides gasoline, such as good, clothing, durable goods, etc.
So, in terms of tax policy, we can frame the profiteering of the oil industry, driven by OPEC, as the "real" Carbon Tax on the economy, which you pay to filthy rich sheiks who export terrorism and ruthless corporations that pollute our land and water through fracking. We can say, think about how much money you would save if you drove an electric car and never had to pay high gas prices again? Wouldn't you feel great? Think of all the money you would be able to spend on other things? But remember, gas prices are going to go up again, as soon as the Saudis have wiped out high cost producers in North Dakota and Russia.
And THAT plays directly into energy policy. Wind and solar cut your utility bills, electric cars cut your spending on gasoline. Alternative energy saves money, it is like a tax cut. And it frees us from people outside the US wreaking havoc on the US economy. Talk about energy independence!