It’s somewhat old news now, but I felt that I should pass this tid bit on to as many people as I can.  A couple of weeks ago McCain (Republican presidential nominee) and Clinton (Losing potential democratic nominee) proposed a bill that would enact a “gas holiday.”  A joyous event where I imagine Hummers from sea to shinning sea and the woods filled with ATVs.  It’s a hedonistic place where the American lifestyle can fester.  Unfortunately an army of no good, two timing, forked tongued economists decided they would crash the party.

Not to be stopped on their god given path to righteousness, the two politicians (namely Clinton) went on to debase economists.

Sigh, it really is a sad world we live in.  Rather than try to enact a good fix for a growing problem, our potential leaders try to put an infected bandaid on the wound.  And for what?  For nothing more than to move forward with their political agenda.

This is why in good conscience I could never vote for McCain or Clinton.  Actions speak louder than words and their actions show that they are not working in the best interest of the people.  They are 100% in it for themselves and if the Bush administration is any indication of that behavior, I say no to another 4 years of hole digging.

Possible fixes?

1. I’ve not done any number crunching or any theory behind it, but here is a possible idea.  Provide government subsidies or rebates to people who turn in cars with gas mileage under 22mpg that purchase a car of 28mpg or better.  The government sets up a program to recycle these cars.  The rebate could be a tax incentive spread over years plus the value of materials cannibalized from the vehicle.  It just needs to be enough to provide incentive to the consumer without creating a huge government debt.  This would allow gas hogs to escape the resale cycle until they end up in a landfill or as a lawn decoration for blue collar comedy.
2. Realize the negative externalities of poor economy vehicles to the consumer.  At the moment, the  “cool factor”, the “in” style, social climate are providing more (econ term) utility to the consumer than the balance of the prices.  Start to tax them so that the car is purchased on utilitarian merits only.
3. Government funded advertisement to change the social climate towards fuel efficient cars.  Not really “cool” to have efficient cars.  Unfortunately it will become a necessity before it becomes cool thanks to current advertising climate.
4. Increase the gas tax.  Actually a good idea considering more money will go to government for roads and etc.  As well as it will help to make up for all the negative externalities associated with driving.
5. Increase budget for public transportation and start building a better rail system between cities and in cities.  Minneapolis has one light rail line and could certainly use more.
6. Increase the power of the dollar. How? Stop spending money on warmongering thus increasing national debt.  Start making peace not war. (cliche slogan but true.)  It’s simply a matter of risk.  If you were to try and get a loan from a bank, do you think the bank would look favorably upon you if you were prone to starting fires in your neighbors houses and currently had trillions of dollars and still growing of unpaid debt?  It’s not rocket science, it’s high school economics.  Unfortunately the current climate in the white house is a proud example of no child left behind.  (If that confused you, NCLB is a garbage program.)

Ok, enough vent for now.  I’d be interested to hear your opinions on the matter and have some intellectual discourse.