Addicted to Oil
This is the phrase made famous by our President in his 2006 State of the Union address. What does he mean by this?
Well America has 4.5% of the world's population but uses 25% of its oil. Per capita we use between 50 and a100% more oil than Europeans do. Furthermore, 60% of that oil is imported. This is an increase from 40% 25 years ago. This significantly impacts three factors that effect our long term safety and well-being.
Geoff Berg
Well America has 4.5% of the world's population but uses 25% of its oil. Per capita we use between 50 and a100% more oil than Europeans do. Furthermore, 60% of that oil is imported. This is an increase from 40% 25 years ago. This significantly impacts three factors that effect our long term safety and well-being.
Geoff Berg
posted by Geoff Berg | 9:36 AM
2 Comments:
Dr. Berg may well have this right. We probably need to increase the cost (via tax not profit to the oil co's) in order to curb demand.
The History Channel is running a series now which highlights our (particularly the U.S.) apatite for energy, not just oil!
The problem is that our entire ecomomy is predicated on the comsumption of oil and energy.
True, in the 70's when the price of oil was high (relatively speaking) and availability was scarce, Americans longed for more fuel efficient autos. However, when we adapted to the prices, (which we have seen even recently as gas prices hit $3.00 per gal and came back to the $2.20+ area) we settled in and see now that SUV's sales are climbing again!
I must say I don't see much of an alternative other than to address this with a tax in an effort to reduce demand and consumption.
I fear however that this would be seen as ultra inflationary and would never pass Congress! The cost would not only hit American's at the pumps, but in product, produce, and just about every other area of our lives. So, I'm afraid this policy or proposal will simply never make it past the drawing board.
It's interesting and creative, but I just don't think it would work in this economy. Keep in mind we have China and India waiting to gobble up the excess oil at whatever price they need to pay....just as they are currently doing with Concrete!
Again, it's provoking and will likely take more time to build consensus.
It appears a tax of some sort would be the most effective mechanism to curb demand, however, it comes back to: What's in it for me?
The way to curb demand voluntarily through a tax would include a method of paying the savings back to Americans.
Like any other tax, collect it and then spend it, but spend it back to the taxpayer in the form of a tax rebate eligible for private investment.
Perhaps it could complement and eventually replace Social Security?
In other words, as the dollars come in, and become earmarked to the taxpayer, the taxpayers related SS liability drops and in effect offsets the existing tax.
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