Hard to believe at first glance, but Ford (F) CEO Alan Mulally would like to see a gas tax that guarantees a price floor of $4/gallon - which he figures will prod small-car sales. Welcome to government-run energy policy.
Given the fact that large amounts of gasoline consumption leads to other problems that indirectly costs the taxpayers millions and millions of dollars, it's not necessarily a bad idea. One of the major issues with our transportation system right now is that costs are skewed since governments subsidize the road system, plus are forced to pay the indirect costs of high gasoline usage and sprawled out communities. In essence, inner-city taxpayers are being screwed because they are subsidizing the lifestyles of those who chose to do mega-commutes every day.
People don't always make the most socially conscious decision. They are driven by their own self interest, which is not necessarily in the interest of the common good. Hence it is the responsibility of the governments to induce the relevant behavior. It is enlightening to see the CEO of an American company come in support of gas price floor. The article misses the whole point that Alan Mulally was trying to make. Yes, the whole world pays a much higher price for gasoline, so why can't americans too?
F basically wants consistency: they don't want to ramp-up small car design and production only to see consumers shift back into trucks and suvs. They were caught making suvs when gas spiked, and now they don't want to be caught making compacts when gas is cheap.
Karl W Miller: Cap/Trade, EPA CO2 edicts (and Obama) are done. Thanks to all who put their credibility on the line with me to save US natural gas and coal.
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Thomas Pan: Calif.'s Imperial Capital Bank, 5 others, closed. SKFXLF
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