Thursday, August 25, 2005
Kyoto and protectionism
Here's my take on the high gas prices.
I think the US wants to see the gas prices go higher and higher. Because their economy, is hurting so bad. It is just another form of the buy American campaigns of the past. Only this time because of the global market, and China's unfair monetary policies the US has decided to go the route of protectionism and use a form of forced buy American campaign in higher gas prices.
You’ve got to admit it is working like a charm. They lower their income taxes and raise the oil prices and commodities due to transportation costs. Recoup their losses plus some.
All the while reaping big bucks from oil revenues.
The car industry is going to have a boom because all of those gas guzzling SUV's and Cadillac’s will be too expensive to operate. Everybody will either buy a new small car or one of the new hybrid vehicles (which the Americans have the patents on). Or if they can afford it people will own two vehicles a small one for in town and a larger one for highway use. The way it's been in Europe for centuries. The British are paying around $4.37 a gallon, among the highest in Europe, about 80 percent of which is tax. Some stations, however, were charging more Tuesday, with prices as high as $5 a gallon. Keep in mind their gas has 100% octane regular.
Forced protectionism buy local, buy American.
Canada and the other Kyoto signee countries are going along with it because of Kyoto commitments. Not to mention now our oil is competitive in a global market.
What does this all mean and what should we do?
Nothing!
It's good for the environment.
Maybe with the exception of lowering income taxes and recoup our losses in the form of GST taxes. At the same time attracting outside investment because of lower income taxes similar to what the Americans have done. It works out better for the poor man because he doesn't have as much money to spend anyway so won't be taxed as much, assuming the income taxes are lowered to compensate for the higher prices. Where as the rich who have money will continue to spend it and be taxed on their spending.
I do believe though that since were going along with this global oil pricing strategy we should at least make it an even playing field across the country by setting a national pricing strategy. Same price for gas no matter where you are in the country, to go along with the global oil pricing strategy.
Maybe then the injustices being perpetrated against the people of Labrador at charging them 143.9$ a litre, while the rest of us complain and grip about 116.9$ a litre.
I think the US wants to see the gas prices go higher and higher. Because their economy, is hurting so bad. It is just another form of the buy American campaigns of the past. Only this time because of the global market, and China's unfair monetary policies the US has decided to go the route of protectionism and use a form of forced buy American campaign in higher gas prices.
You’ve got to admit it is working like a charm. They lower their income taxes and raise the oil prices and commodities due to transportation costs. Recoup their losses plus some.
All the while reaping big bucks from oil revenues.
The car industry is going to have a boom because all of those gas guzzling SUV's and Cadillac’s will be too expensive to operate. Everybody will either buy a new small car or one of the new hybrid vehicles (which the Americans have the patents on). Or if they can afford it people will own two vehicles a small one for in town and a larger one for highway use. The way it's been in Europe for centuries. The British are paying around $4.37 a gallon, among the highest in Europe, about 80 percent of which is tax. Some stations, however, were charging more Tuesday, with prices as high as $5 a gallon. Keep in mind their gas has 100% octane regular.
Forced protectionism buy local, buy American.
Canada and the other Kyoto signee countries are going along with it because of Kyoto commitments. Not to mention now our oil is competitive in a global market.
What does this all mean and what should we do?
Nothing!
It's good for the environment.
Maybe with the exception of lowering income taxes and recoup our losses in the form of GST taxes. At the same time attracting outside investment because of lower income taxes similar to what the Americans have done. It works out better for the poor man because he doesn't have as much money to spend anyway so won't be taxed as much, assuming the income taxes are lowered to compensate for the higher prices. Where as the rich who have money will continue to spend it and be taxed on their spending.
I do believe though that since were going along with this global oil pricing strategy we should at least make it an even playing field across the country by setting a national pricing strategy. Same price for gas no matter where you are in the country, to go along with the global oil pricing strategy.
Maybe then the injustices being perpetrated against the people of Labrador at charging them 143.9$ a litre, while the rest of us complain and grip about 116.9$ a litre.
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