Letters to the Editor
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Really Now?
I come here hoping to read intelligent remarks. Instead I find flames and hyperbole.
Did the gas holiday "work" for Illinois consumers? Well, If saving $.60 per week is a big deal, then I suppose it did. What did Illinois residents miss out on because of the uncollected millions. I'l just bet Illinois is the only state in the nation that has plenty of money for all the government services that the citizens demand, so probably nothing, right?
2000 is a long time ago for the gas market. Many things that are obvious now were barely discussed then:
India and China
The interdependence of the grain, meat and petroleum markets via biofuels.
Protecting consumers from market realities is not always the best strategy. Despite the high level of gasoline reserves, prices are staying high. Suppliers are obviously passing through the spot market prices directly to retailers, who have low margins and little room to cut the prices they offer. will a gas tax holiday change this? I doubt it; in fact I expect prices will rise to meet current levels.
Don't worry about gas supplies. At $120. per barrel the effective supply of petroleum is huge and growing. Previous uneconomic extraction plans now make perfect sense. The day is nearly at hand when any organic material can be thrown into a digester and turned into bio-diesel or ethanol. I don't think developed-world consumers are likely to change their consumption habits just to keep developing countries from throwing environmental treasures into the fuel market. It is clear that many farmers will be returning marginal erodible lands to production, trading valuable topsoil for profits this year, with no government action to discourage them.
Personally, I'd rather see the government have the money and hope that it will pay for some obvious low or no carbon energy programs.
the real danger isn't that we're running out of oil, it is that we are not running out of oil. The invisible hand of the market will continue to whup us upside the head with increasing greenhouse emissions and global warming until we all decide that this is not a problem that markets will fix. Until then we can keep filling your tanks with gas, corn, soybeans, chicken. the rain forest, switchgrass or whatever.
I don't think it is fair to call the Illinois gas holiday a success. In any case the gas market is different now. I do believe that Hillary is pandering by supporting the gas holiday.