Sunday, May 11, 2008

Super Dave to the rescue

A while back, I posted a piece about Barack Obama. In the post, I noted how I was impressed I have been by him since he stepped into the national political scene in 2004.

Since that post, Obama has done nothing but impress me.

His latest stand, against temporarily suspending the national gas tax, is another example of how he could just be the instrument of change that is needed in Washington.

Obama called repealing the gas tax a “stunt” which is exactly what it is. Hence the Super Dave reference.

I can’t remember the last time a politician spoke in such blunt, but educated terms. Both President Bush and John McCain are “blunt” but rarely spout anything of substance.

This break from the gas tax is just not a good idea on many, many levels.

First, there’s the obvious. Suspension of the tax doesn’t mean lower prices. Gas stations and oil companies can continue charging whatever they want, even with the suspension. And speaking of things I can’t remember, when was the last time a gas station or oil company gave anyone a break?

The next issue is simple economics. You don’t have to be Alan Greenspan to comprehend the concept of supply and demand. Suspension of the gas tax will create an artificial demand, which will cause prices to rise. And even if the spike in demand isn’t great, it may give the gas stations and oil companies reason to jack prices back-up, thereby negating any “savings” for average American.

Lastly, let’s look at the “savings” as purported by McCain and Hilary Clinton. The gas tax is 18-cents a gallon, so for the sake of keeping this easy, I’ll use a 10-gallons as the amount off the average fill-up:

- Weekly fill-up: 10 x $.18 = $1.80
- If you fill-up your tank on a weekly basis: $1.80 x 4 weeks = $7.20.
- Gas tax is supposed to be suspended for 3 months: $6.40 x 3 months = $21.60
- Gas at $3.55/gallon (estimate if tax is suspended) $3.55 x 10 gallons = $35.50

The total “savings” over 3 months $21.60 is barely enough to cover half of a tank of discounted gas. I realize this is overly simple and there are many variables, but this is assuming the full 18-cent discount makes it to end consumers.

After looking at the great “break from high fuel costs” this gas tax suspension offers, I reiterate Obama’s notion that this is nothing more than a stunt. A great political stunt, from a PR perspective, but one that will negatively affect Americans.

I am not happy to be spending $40 at the pump, but I am happy to see that ridership is up on King County Metro and Sound Transit. The fact that fuel prices are finally high enough that people are beginning to re-evaluate driving and are looking at alternatives is great.

I am not preaching from on high, as I do drive alone to and from work everyday. But I have looked into bussing and what is a 20 minute commute by car, would take over an hour by bus. Should a reasonable alternative come about, I’ll be the first one in-line to buy a monthly pass.

I am definitely driving less on a weekly basis. What used to be weekly stops at the gas station are now every other week. And when I can, I do bus it…mostly trips to downtown Seattle,…I don’t have to worry about paying for parking and I can have a couple beers should the fancy strike me.

I am not advocating getting rid of your car, I am just saying take a second look at the alternatives. They may not be so bad.

If it takes $4/gallon gas to get everyone to drive a little less, then God Bless $4/gallon gas.

Never thought I’d say that.

1 comment:

Anonymous said...

Preach it man! High gas prices suck for everyone, especially for lower income earners as the cost of gas gets added into everything we can barely afford to buy. But, at the pump, my hope is that $4 + will equal innovation in other energy sources, namely fuel cell. If only I could figure out a way to rig Olivia up to a fuel cell, would cut the cost of having kids. Ha!