Friday, August 19, 2005

a gallon of gas

De facto president Bush is lucky -- gas has hit $3 a gallon AFTER his "re-election." It's a classic supply and demand situation, with China and India now demanding much more than they did 10 years ago, and Americans driving increasingly inefficient vehicles.

I have no problem with $3/gallon gas. It's still the cheapest gas of any major developed country. In fact, I'd go further: I'd set a fluctuating federal tax that would ensure that gas prices are consistently $4 a gallon; the tax would rise as oil market prices fall and vice-versa, but the consumer would see the same price. It would put a serious dent in the absurd SUV market (which is killing us both on the roads and with their exhaust) and make hybrids and other alternatives more realistic and more viable options, and encourage more research.