Help me out here. I am having trouble following the various solutions. The solutions to our "energy crisis".
We’re burning too much oil and gasoline, critics tell us. Soon we will run out. And we’ll all freeze, or move to Arkansas. I prefer the Caribbean.
Anyway, some in Congress now want to force car companies to make cars that get better mileage. If we drive them we will burn less gas. Which will lower the price of gas and oil. When prices fall we will use more gas and oil.
All right. Then we’ll slap new taxes on gas. Make it really expensive. When gas is really expensive we will drive less. We will buy less gas. That will reduce demand for oil. Which will bring world oil prices down. So Indians and Chinese will buy more oil and gas. Since the prices are so low.
So the amount of oil burned in the world will probably not go down at all. It will probably go up. If you don’t believe that, tell it to 2.5 billion Chinese and Indians who are dying to go for a Sunday drive.
Well, let’s slap taxes on oil firms. Excess profit taxes. If they face more taxes, they will need to sell more oil and gas. To make up some for the taxes.
They will also pass the tax on to us. We will burn less. So the oil price will go down. And world consumption will go up. Spurred by lower oil prices.
Wait a minute. How about mass transit? We will make car-driving prohibitively expensive. And we’ll subsidize all sorts of mass transit. To make it incredibly cheap.
That will cause us to drive less. Which will lower world prices for oil and gas. Lower prices will cause more people around the world to buy more. Meanwhile, our car companies will be selling fewer cars. Since we’ll be catching the bus and train more...