Tuesday, May 02, 2006

Some common sense

What kind of idiot is Bill Frist, supporting a measure to give people a $100 credit for rising gas prices? The government cannot solve high prices with subsidies. Thankfully it seems that consumers are smarter than our politicians and think it's a stupid idea as well.

Link to NY Times article

Here's an idea....ramp up the tax on fossil fuel gas over time and create a fund for Grants or R&D Loans for alternative energy such as ethanol. The higher prices discourage consumers from buying fossil fuels and provide encouragement for consumers to buy lesser taxed Ethanol. With less tax, the producers (a) produce domestically (b) enjoy greater margins from reduced tax (c) consumers are motivated to buy ethanol cars because of attractive lower prices of gas.

Brazil has recently achieved their economic freedom completely from sugar cane (converted to ethanol) and 1 offfshore rig. Granted, their needs are less but we need to take the proper steps to remove our dependency on foreign energy.

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