Energy independence by government fiat:  Raise the price of gas to $4 – before the next oil crunch

Berkeley, Calif. – Remember last summer, when gas prices broke new records every day and the era of “energy independence” was on the horizon? Gas is half what it was then, but not for long. When OPEC’s planned production cuts hit, tightening the global supply of oil just when economies are poised to resume growth, the world may well face the worst oil crunch in history.

The way to avert the brunt of that? It might not be pretty at first, but a price floor – a government-mandated minimum – on retail gas will buy us the time we need to wean us off the oil.

America needs to develop a siege mentality:

American voters and leaders need to act as though gas were still at $4 a gallon and put in place policies and spending priorities that will enable us to survive $5 or even $10 a gallon gas. We must work, play, eat, build, live, and legislate as though we will be scraping the bottom of the oil barrel in a decade.

Revenue enhancement bonanza:

Meanwhile, the one measure that should and could be instituted immediately is a floor for the retail price of gas. If, for example, the minimum were $4 a gallon and the market price was $2, the government would pocket the difference and find itself with billions to spend on mass transit.

It’s for the little people:

Consumers will gripe, but they’ll soon find solace in the reliable, affordable buses and trains they’ll ride when gas prices soar beyond reach. For low-income individuals who would truly suffer as a result of such a policy, a payroll tax offset or refundable tax credit can ease the burden.

I have my own idea.  Why not institute this  in California first, and see what happens?  Will Californians hunker down? Or will they leave California in droves?  And what will they tax to build a California border fence to keep them all in?

H/T Lucianne

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