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Gas prices - your thoughts?
I've been reading the headlines and the political cartoons about gas prices in the U.S., and I'm of two equally uneducated minds about it:
1. Americans are spoiled rotten and haven't paid the true cost of petroleum-based fuels for decades. Our government heavily subsidizes oil prices and we've had artificially low prices. Granted, the changes in gas prices aren't due to any decrease in government subsidization but are due (as far as I know) to decreased production and the weaker dollar, but still: quitcher bitching!
2. Higher gas prices have a regressive impact - the increased cost of consumption (and the correlated increased cost of consumer goods) is going to fall heavier on lower-income people because it represents a larger percentage of their income. There's no real reason for the gas prices to be higher except that the producers and refiners are setting prices higher and making huge profits.
Discuss. Bring on the science, the economics, explain to me why gas prices are a good or a bad thing. Inquiring minds want to know!
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"If ten million people believe a foolish thing, it is still a foolish thing."
- Anatole France
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