Tuesday, April 22, 2008

Changes

Are We about done, or are We only getting started? Paul Krugman did sound pessimistic, but not as bad as I, and Ryan Avent presents macro material to justify that pessimism. Tyler Cowen would assert that it is the internal Migration from rural to Urban in China which is the basic cause behind the Commodity markets run-up. What I know is that the price of Oil, now at $118/barrel, will continue to go up if OPEC refuses to increase Oil production, until such time as the urbanized West cuts back its Oil consumption to counter the increased Oil consumption of the urbanized Chinese. Someone has to decrease their Oil Consumption schedules. I ask myself now if Consumers hate me sufficiently at this time, or if I should provide some Tax advocations which will eventually cushion the Crash of defeated Expectations.

A prime Tax would be a $30/Person Boarding Tax for Air Passengers; the Passengers will be paying the added Expense as Fuel Cost soon, and the IRS seems like a better Recipient in terms of down-the-Road Tax reductions than do the Oil companies. A Tax I really like is a Pump Tax, where the Pump meter starts from a position of $5, and goes ching-ching like a trolley after that; the Overhead of Fuel stations could be minimized by granting them half of the revenue from the Tax, as Collection and Transmission Cost. Such a Tax could equally be imposed upon Electric bills, Heating fuel bills, and the enviable Natural Gas bill. I could even be so Rude as to insist that all Retail Outlets position Coin-operated Attendance wheels at the Entrance, where you have to shell out Quarters to simply get in Groceries or Clothing stores. Consumers should understand that Government could make life much worse and Time-consuming.

There are obviously some unpatriotic Consumers who would scream about the new Restrictions at high Cost; but all of the devices utilized not only aids in funding Government without more disadvantageous taxation, it forces Consumers to consider their Energy consumption patterns. Housewives will think to concentrate their Shopping without the necessary Quarters to get their kids through the Turnstiles. They will, in consequence, buy more appropriately in larger quantities, without the kids screaming for trash Products. It will mean less traffic to the Retail stores, less crowding in the stores, more detailed lists canceling Impulse buying, and lower Shelving Costs for the Retail stores. A Quarter/Person Turnstile Cost could save up to $.40 of Energy by altered Consumption patterns, with only about $.14-.16 loss of Consumption dollars. Does that make Sense?–only to an Economist! lgl

1 comment:

Celal Birader said...

What I know is that the price of Oil, now at $118/barrel, will continue to go up if OPEC refuses to increase Oil production, until such time as the urbanized West cuts back its Oil consumption to counter the increased Oil consumption of the urbanized Chinese.

The price elasticity of demand is indeed greater for the Chinese as opposed to the American consumer. The American consumer surely will have to pay a "tax" in some shape or form. It might just make car pooling quite an attractive option.