Black
Market
Question
As
much as people and governments are worried about dependencies on oil
and the health of the country, why doesn't the government hike the
taxes on gas and tobacco products to make the public find other
alternatives? Because, the public will find other
alternatives.
Economics
101
First
of all, there are high taxes on gas and tobacco. More than half the
cost of tobacco and nearly half the cost of gas at the pump is tax.
The government has a hard time telling people to stop smoking because
the government depend heavily on the tax revenue the addiction brings
to the coffers. The same is true with gasoline. Alternative fuels
will not take over the market until they are economically superior to
gasoline. Until governments can receive the same amount of revenue by
replacing gas, we will use gas. That is it. There just is not any
more to it.
Now, think about increasing the taxes on tobacco. If
the government doubles their revenue on Tobacco, it will take twice
as much effort to get government to get rid of tobacco.
Again, the
same goes for gas. Europeans keep saying "jack up the taxes on
gas and people will find alternative fuels." Well, that is not
entirely accurate. Economics professors will tell you that people
will find alternative means of obtain gasoline, not alternatives to
gasoline itself. That means a black market.
To be honest, I bet if
OPEC jacked up the price of crude oil for a long period, with no end
in sight, the motivation for alternative fuels would finally com
about.
Music
Industry
A
totally new example is what is happening to the music industry in the
western world right now. They are watching their means of existence
crumble from under them. For the last sixty or eighty years, the
entertainment industry put most of their time and resources
in charging for recordings instead of live acting. Live acting has
been around since before written language. People have charged to
entertain ever since we have stood up on two legs.
Well, this is a
new example,except perhaps for what the automobile industry did to
hors drawn carriages, or maybe what the steam ship did to the sailing
vessel. Now, that is a clean alternative fuel.
Random Gripe
about taxes
Consider
when you go to the pump the next time that nearly .60 cents of the
cost is tax. Add that cost to your income tax and sales tax. Oh, and
don't forget property tax. Then there are the eight taxes on your
phone line. It just makes me ill. Now they want to add hidden VAT
(Value Added Taxes) to everything you buy including food. VAT taxes
are particularly nasty, because they are in the cost (to the
consumer), not listed separately on the ticket at time of purchase.
Lunch after
My
friend and I went to Chili's instead of the Alamo Draft House. We ate
good food and had a good time. I kind of missed going to the movies
and having a beer. It is St. Patrick's day. I did have a Guniess at
Chili's. That counts.
Songs
http://www.radioparadise.com/modules.php?name=songinfo&song_id=2134
Artist:Ray
Wylie Hubbard
Song:Conversation with the Devil
Album:Crusades
of the Restless Knights
http://www.radioparadise.com/modules.php?name=songinfo&song_id=31053
Artist:Richard
Thompson
Song:Beeswing
Album:Action
Packed
No comments:
Post a Comment