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Will higher fuel prices push buyers more toward American made goods?
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<p style="margin: 0in 0in 0pt;" class="MsoNormal"><span style="font-size: small;"><span style="font-family: verdana,geneva;"><span style="font-size: small;">The last thing I would expect this administration and congress to do is tap into the Strategic Petroleum Reserve.<span style="mso-spacerun: yes;"> </span>One could argue that such an emergency response would reinforce the perception of scarcity and would therefore actually spook the markets into higher pricing.<span style="mso-spacerun: yes;"> </span></span></span></span></p> <p style="margin: 0in 0in 0pt;" class="MsoNormal"><span style="font-size: small;"><span style="font-family: verdana,geneva;"><span style="font-size: small;"> <o:p></o:p></span></span></span></p> <p style="margin: 0in 0in 0pt;" class="MsoNormal"><span style="font-family: verdana,geneva;"><span style="font-size: small;">What I would expect is a crackdown on driving once gasoline hits $6 per gallon.<span style="mso-spacerun: yes;"> </span>At that price, consumers will demand a government solution. </span></span></p> <p style="margin: 0in 0in 0pt;" class="MsoNormal"><span style="font-size: small;"><span style="font-family: verdana,geneva;"><span style="font-size: small;"> <o:p></o:p></span></span></span></p> <p style="margin: 0in 0in 0pt;" class="MsoNormal"><span style="font-size: small;"><span style="font-family: verdana,geneva;"><span style="font-size: small;">One idea will be to put a hefty new tax on gasoline to reduce consumption, thus causing the price to drop.<span style="mso-spacerun: yes;"> </span>It is kind of like setting a fire to stop a fire.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span></span></span></span></p> <p style="margin: 0in 0in 0pt;" class="MsoNormal"><span style="font-size: small;"><span style="font-family: verdana,geneva;"><span style="font-size: small;"> <o:p></o:p></span></span></span></p> <p style="margin: 0in 0in 0pt;" class="MsoNormal"><span style="font-size: small;"><span style="font-family: verdana,geneva;"><span style="font-size: small;">There will be a call for the subsidization gasoline for low-income drivers.<span style="mso-spacerun: yes;"> </span></span></span></span></p> <p style="margin: 0in 0in 0pt;" class="MsoNormal"><span style="font-size: small;"><span style="font-family: verdana,geneva;"><span style="font-size: small;"> <o:p></o:p></span></span></span></p> <p style="margin: 0in 0in 0pt;" class="MsoNormal"><span style="font-size: small;"><span style="font-family: verdana,geneva;"><span style="font-size: small;">We could set up a new bureaucracy to monitor gasoline purchases at the pump.<span style="mso-spacerun: yes;"> </span>With that data, we could put in a <span style="text-decoration: underline;">conservation pricing rate structure</span> that raises the price per gallon depending on the number of gallons a driver consumes in a given time period. That extra cost per gallon would then be used to subsidize the drivers who use less.<span style="mso-spacerun: yes;"> </span></span></span></span></p> <p style="margin: 0in 0in 0pt;" class="MsoNormal"><span style="font-size: small;"><span style="font-family: verdana,geneva;"><span style="font-size: small;"> <o:p></o:p></span></span></span></p> <p><span style="font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA;"><span style="font-family: verdana,geneva;"><span style="font-size: small;">A lower speed limit will be another popular idea.<span style="mso-spacerun: yes;"> </span>The trucking industry will want an exemption from that.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span></span></span></span></p>
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