Re: Gas
On Sun, 17 Sep 2000, Bryan Caplan wrote: Where would the supply-side effect come from? Just because the world supply is fixed, does not mean that one country can't reduce after-tax prices by cutting taxes. Inelastically supplied to the world, elastically supplied to individual countries. Prof. Bryan Caplan [EMAIL PROTECTED] If the product we are talking about is gasoline, it seems to me the oil is refined locally with imported oil. If gasoline itself is imported, then yes, the supply is elastic. But if the gasoline is all refined with Japan, then in the short run, if refineries are running at full capacity, it seems to me the supply of gasoline is inelastic, if not fixed. Fred Foldvary
Re: Gas
Fred Foldvary wrote: From: "Thomas TerBush" [EMAIL PROTECTED] The government here in Japan has a sly "solution" to this problem. Here the government maintains a stable gas price target by fluctuating the tax. As the price of oil changes, the government adjusts the tax to keep prices around US$4.50 a gallon. Since there's no price change, no one complains (well, I complain, but I'm definitely in the minority here in every way). If the supply of oil is fixed in the short run, then a tax on the sales price of oil should not affect the price to the consumer and just affects the profits of the seller. So perhaps the government has not really provided a solution at all, but just fools the public into thinking so. Since Japan imports all its oil, even in the longer run, if the tax is reduced, the demand would not change, so would the price not be affected? Where would the supply-side effect come from? Just because the world supply is fixed, does not mean that one country can't reduce after-tax prices by cutting taxes. Inelastically supplied to the world, elastically supplied to individual countries. -- Prof. Bryan Caplan [EMAIL PROTECTED] http://www.gmu.edu/departments/economics/bcaplan "[W]hen we attempt to prove by direct argument, what is really self-evident, the reasoning will always be inconclusive; for it will either take for granted the thing to be proved, or something not more evident; and so, instead of giving strength to the conclusion, will rather tempt those to doubt of it, who never did so before." -- Thomas Reid, _Essays on the Active Powers of the Human Mind_
RE: Gas
No, its more confusing than that. The government has raised taxes on fuel, this was sly when the oil price was falling, but now with oil above $30 a barrel, gas here costs 80p ($1.20) a litre. The British are copying the French, who have a long tradition of protesting when they disagree with government policy. French fishermen recently successfully forced a fuel price reduction. The British road hauliers looking at how action had been effective in France, blockaded the oil refineries in an attempt to force a similar climb down on the part of the UK government. PM Blair has told them to drop dead and says he will get the police to escort tanker trucks through the blockades if necessary. (it is now necessary) PM Blair is many things, but we have yet to see if he has the mettle to stare down a strongly held belief. So long as you do not need to travel anywhere by car, this whole thing has so far been quite entertaining. As to Brian's point of rationing, it never had time to be implemented, people rushed to gas stations, and drained them within a day or so. Now gas is almost impossible to find and limited to emergency vehicles, but we are promised ACTION! (So hold your breath). -Original Message- From: Bryan Caplan [SMTP:[EMAIL PROTECTED]] Sent: Wednesday, September 13, 2000 6:54 PM To: [EMAIL PROTECTED] Subject:Gas Supposedly Britons are already cueing for gas. What's happened? Price controls? Expected price controls? -- Prof. Bryan Caplan [EMAIL PROTECTED] http://www.gmu.edu/departments/economics/bcaplan "We may be dissatisfied with television for two quite different reasons: because our set does not work, or because we dislike the program we are receiving. Similarly, we may be dissatisfied with ourselves for two quite different reasons: because our body does not work (bodily illness), or because we dislike our conduct (mental illness)." --Thomas Szasz, *The Untamed Tongue*
Re: Gas
The government here in Japan has a sly "solution" to this problem. Here the government maintains a stable gas price target by fluctuating the tax. As the price of oil changes, the government adjusts the tax to keep prices around US$4.50 a gallon. Since there's no price change, no one complains (well, I complain, but I'm definitely in the minority here in every way). Tom -Original Message- From: James Sproule [EMAIL PROTECTED] To: '[EMAIL PROTECTED]' [EMAIL PROTECTED] Date: Wednesday, September 13, 2000 2:15 PM Subject: RE: Gas -- From: James Sproule[SMTP:[EMAIL PROTECTED]] Sent: Wednesday, September 13, 2000 12:59:08 PM To: '[EMAIL PROTECTED]' Subject: RE: Gas Auto forwarded by a Rule No, its more confusing than that. The government has raised taxes on fuel, this was sly when the oil price was falling, but now with oil above $30 a barrel, gas here costs 80p ($1.20) a litre. The British are copying the French, who have a long tradition of protesting when they disagree with government policy. French fishermen recently successfully forced a fuel price reduction. The British road hauliers looking at how action had been effective in France, blockaded the oil refineries in an attempt to force a similar climb down on the part of the UK government. PM Blair has told them to drop dead and says he will get the police to escort tanker trucks through the blockades if necessary. (it is now necessary) PM Blair is many things, but we have yet to see if he has the mettle to stare down a strongly held belief. So long as you do not need to travel anywhere by car, this whole thing has so far been quite entertaining. As to Brian's point of rationing, it never had time to be implemented, people rushed to gas stations, and drained them within a day or so. Now gas is almost impossible to find and limited to emergency vehicles, but we are promised ACTION! (So hold your breath). -Original Message- From: Bryan Caplan [SMTP:[EMAIL PROTECTED]] Sent: Wednesday, September 13, 2000 6:54 PM To: [EMAIL PROTECTED] Subject: Gas Supposedly Britons are already cueing for gas. What's happened? Price controls? Expected price controls? -- Prof. Bryan Caplan [EMAIL PROTECTED] http://www.gmu.edu/departments/economics/bcaplan "We may be dissatisfied with television for two quite different reasons: because our set does not work, or because we dislike the program we are receiving. Similarly, we may be dissatisfied with ourselves for two quite different reasons: because our body does not work (bodily illness), or because we dislike our conduct (mental illness)." --Thomas Szasz, *The Untamed Tongue*
