tag:blogger.com,1999:blog-5465015914589377788.post9102134815573155820..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: Can Tax Credits Affect Fertility?Michael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5465015914589377788.post-46798766772920899972008-08-01T09:43:00.000-04:002008-08-01T09:43:00.000-04:00Fernando: You make an interesting point. The str...Fernando: You make an interesting point. The strategy you describe will work as long as domestic sources of oil are available (even if they are somewhat more expensive to get at). Maintaining lower prices on domestic oil will keep demand for oil high and eventually will put pressure on these domestic sources. This will work for a while, but not forever. As long as your strategy is coupled with substantial subsidies for all other plausible alternative sources of energy, we may have alternative solutions before the domestic oil runs out. But if at some point we become unable to satisfy demand domestically, we'll be in for a very rude shock on oil prices making the past year or two seem mild by comparison.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-6404422629697044842008-08-01T07:30:00.000-04:002008-08-01T07:30:00.000-04:00Hi Michael,I understand the point of your post (th...Hi Michael,<BR/><BR/>I understand the point of your post (that economic incentives mostly work), but as far as foreign oil goes, I'm not sure the gas tax comment applies. To me, there's two related problems:<BR/>1- dependence on foreign oil<BR/>2- "excessive" use of gas (which causes problem 1)<BR/><BR/>To me, reducing dependence on FOREIGN oil requires a combination of making "local" oil cheaper and making "foreign" oil expensive. Maybe look at taxing oil transportation?<BR/><BR/>My opinion is that consumer-level gas taxes may address problem 2, but with an increased risk of lower economic activity (people more pessimistic because of high prices) and/or spiraling inflation (as gas tax costs are added to prices).<BR/><BR/>Thanks for your blog! I'm an avid reader.<BR/><BR/>Cheers,<BR/>FernandoAnonymousnoreply@blogger.com