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Gas here is about $1.22 a liter or about $4.50 a gallon. About half being taxes. The conservationists, want high gas prices, to protect the enviroment, the politicians use the excuse, to raise taxes, because there stature is measured in how much funds they control (there budget). And with all that money, flowing around, it´s always easier for some to stick. The gas companies like high prices, because when they raise there percentage, they have someone else to blame it on.
In other words, the percentage of personnel revenues used for transportation is increasing, while the alternate transportation system isn´t really growing much. In other words the tail is wagging the dog.
When the consumer is spending more on transportation, they are spending less on other things. It hurts other parts of the economy, by slowing sales, and raising costs by increased shipping prices. Eventually production goes down, inflation increases and everybody gets hurt. The Arabs get pissed, because all those dollars they have are worth less, and they start thinking the oil is worth more in the ground, than elsewhere.
What they never seem to offer, is alternatives, that are viable. The gas companies sure don´t want things to change. The car companies, have a system in place they don´t want to change and besides they can produce fuel efficient cars, to replace what was fuel effiecent five years ago (sell more cars) that are obsolete, before they roll of the assembly line. The government isn´t really interested in promoting alternate fuel technologies.
Government figures if the people scream loud enough, they can offer public transportation, usually years behind the curve and a token.
In other words, things are a real mess, the tail wagging the dog.
They say they need the high gas taxes, to discourage waste, and provide a transportation net work, that they are trying very hard to make obsolete. And at the same time, putting a transportation bottle neck in the economy and really the ones being hurt the most are the people working in services (60%) that usually need the transportation the most. Rich people have there name on a building, middle class have there name on there desk, low middle have there name on there shirt and poor have there name at the processors office.
WOW :lol: Gas economics by Chuck[addsig]