- Sky F
- Salt Lake City, UT
- United States
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Gas Should Be Raised to Flat $5 Dollars A Gallon
Gas is thought to be an inelastic good, an increase in price would not cause people to change their habits and they would simply pay more of their money rather than using less gas.
In 2008, I believe, when gas prices were very high, at around the $4.50 mark, that is when gas became elastic and people would lower their spending.
On top of that, there was a serious need for fuel efficient cars. Once the prices lowered again during the recession, the demand for fuel efficient cars wasn't so prevalent.
I propose to increase the gas price to $5 dollars a gallon, with the difference between the $5 price and the actual price ($3.59 ish where I live) going to pay taxes. These taxes would pay for alternative transportation.
The result would be a demand for fuel efficient cars and a rise in alternative transportation. The end result of this would be less reliance on foreign oil by simply using far less of it. It also would drive prices up on inefficiently transported goods and would increase local economies by giving local producers an edge in price. The benefits are huge.
This requires a lot of cooperative effort from... everyone.
Sure, it would be a nuisance for many and there is a lot of cons. But this drives our demand for innovation in entirely the correct direction.