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November 25, 2008

WSJ: Collapsing gas prices -- a $200B "stimulus"

Yep, $2.00/gal gas compared to $4.00/gal gas certainly is.

But the collapse of gasoline prices since the summer -- a drop of more than $2 a gallon in my neighborhood -- is an economic stimulus worth more than $200 billion a year.
The WSJ seems to think congress won't raise the gas tax, but in the same article they also say:
The U.S. Department of Transportation last week said that gasoline taxes paid into the highway trust fund fell by $3 billion in the 2008 fiscal year.
So, of that $200B "stimulus" the schmuck on the street is getting, it seems unlikely that cash strapped congress won't be looking to, as the mafiosi say, "wet its beak". After all, The One is on record saying that he thinks $4/gal was about the right price for gas.

[UPDATE] Here's how congress can raise the gas tax anywhere between $.05 and $.10 and seem like "heroes". Simply cite this commission study that recommended a $.40/gal hike in the gas tax and claim they're giving us all a break.

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posted by Purp at 08:25 PM

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