>> Have any european members seen a 10-15% rise in gas prices?
>>
I'll bet not. Rising per barrel costs don't translate directly into a price
increase at the pump. I'll bet it costs no more to bring gasoline to market
in Britain or Europe than it does here, if you take away the tax man's
share (not just a fuel tax, but cute things like VAT as well). I heard on
the radio today that about a 12 cent per gallon increase will be felt all
around the U.S. That 8(?)p increase in Britain would be far less than a
10-15% increase in prices.
And Leo, respectfully I must submit that high per gallon costs haven't
seemed to employ many people in Europe, but I'll also be the first to point
out that it's taxes and not profits at work there. And the high gas prices
in 1979 didn't seem to do a whole lot for the U.S. economy either. Right
now, adjusted for inflation, gas prices in the U.S. (with the possible
exception of tax-crazed California) are lower than they have EVER been.
(Yes, I'm from Massachusetts, and on the subject of gas, CA is tax-crazy).
Why with such low fuel prices is the U.S. economy on the whole going like
gangbusters? Would it go better on the whole with higher per-barrel costs?
I don't think so. I guess the point is that "what's good for GM is good for
America" is not the case if you work for Ford (that's an analogy, I do not
work for Ford).
And while high per barrel prices may cause local booms (such as in
Houston), I think there's a definite downside for those in regions that
depend on energy but don't produce it or sell it.
Nevin
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