It has occurred to me that although I have read a large number of complaints regarding how gas prices are going up, I have read remarkably little on how to deal with the increasing gas prices. I get the feeling that resignation has taken over. I have a plan that will work on reducing those prices, and I would like to see something at least similar taken up by the Democrats this fall to help our country.
As a bit of pre-explanation, you should be aware that I have a very strong view that corporations should be allowed to do what they do best...sell goods and services in a relatively profitable way. I also think that government should be a strong counter-balancing force to corporations that exist in limited, or essentially non-existent, market places. Relevant to this discussion, energy corporations should be strongly counter-balanced by government legislation, as well as several other steps that should be taken.
More below...
Here is the list of action items that the Congress should take up. I would rather than Congress act now, but the Republican-controlled House and Senate don't seem likely to act, so this is a future list:
1) Regulate energy corporations. Part I - windfall taxes. Part II - full regulation of the industry if they don't start competing.
2) Implement a progressive national tax on vehicles based on mileage (which will fund mass transportation).
3) Re-examine CAFE regulations, and modify to require better mileage sooner.
4) Enact legislation to minimize gas wasting sports (e.g. NASCAR, speed boats). Allow the sports to continue unimpeded if true alternative fuels are used (e.g. ethanol, hydrogen cells).
5) Modify the current energy bill and enact significantly better funding for alternative energy research.
In of themselves, none of these items will drastically alter gas prices, but put together, these items will have a very noticeable impact. Not only quickly, but will help in the long run. Here is my logic for each of the items.
1: Energy corporations are not competing. I don't need to be an industry insider, examine balance sheets, or be on the corporate boards to understand this. Exxon-Mobil, Royal Dutch Shell, BP, etc all are reporting record profits. If all of them are reporting record profits, they simply cannot be competing against each other. This tells me that they need to be regulated. First step is a windfall profit tax...they can afford to put more money into the pot to help our nation; since they are not willing to compete with each other to offer consumers better prices, they can "donate" to help our nation as a whole. Second step is to give them a stern warning from Congress...either start competing, or you will be fully regulated (breaking them back up again would also work). I could probably handle the prices at the pump better if it really was because of the price of oil and not implicit collusion.
2: This one is to address that fact that supply is dwindling, and it will all be gone at some point. Every time you see a Hummer roll by, you should be upset. Yeah, maybe the owner can afford $100 a tank to drive 300 miles, but that is wasted gas for the nation as a whole. Their willingness to pay drives up your prices too. And let's face it, all these large SUVs are unnecessary for the vast majority of people who drive them. Sure, we can allow exceptions for emergency workers, but we should make those drivers pay additional taxes to fund mass transportation for the people who can't afford the increased prices. I would favor a simple scale: high taxes on vehicles who get less than 20 mpg highway, and moderately high taxes on vehicles who get less that 20 mpg city (but meet 20 mpg highway requirement). The variation isn't important, but it will encourage people to take the oil shortage seriously. Making it a constant year to year tax (as opposed to only current sales) will encourage people to abandon the fuel eaters.
3: CAFE (Corporate Average Fuel Economy) is applied across the entire fleet of vehicles that a manufacturer makes. It is only divided amongst a few different types (cars, light trucks), and was recently modified to segment some of the heavier trucks and vans. However, the modifications are relatively minor (roughly 15% increase in average fuel economy for light trucks), and the penalties for complying are too light (4 or 5 manufacturers do not comply and just pay the penalty). CAFE should become more agressive and should include heavier vehicles. For the heavier vehicles, find the current average and bump it up 10% every year for 5 years and then reexamine at that point.
4: I know it is fun to watch NASCAR, but with a shrinking fuel supply, don't you think it is time to stop wasting untold millions of gallons of fuel a year for vehicles to drive in circles? I don't want to eliminate this class of sports, but they need to be reduced for the public good. Leaving the door wide open for the sports to continue unimpeded using alternative fuels would encourage an enthusiast group to implement those alternatives.
5: This is the longer term pay back. The amount of corporate welfare in the current energy bill is staggering...and the small amount of funding to research alternatives is equally staggering. What they heck is Congress doing giving money to corporations that are making record profits? We need alternatives, and we need to stop nickel and diming research efforts towards those alternatives.
My apologies if this got too long, but I think it would be nice to see more about what to do rather than complaining about it. I'm also a big fan of prodding. I don't ask people to agree with me, but I do ask that people consider different choices. I've offered some here...and I hope it's given some food for thought.