Christian Conservative Christian "Independent"

I'm an evangelical Christian, member of the CPC, but presently & unjustly exiled to wander the political wilderness.
All opinions expressed here are solely my own.

Tuesday, May 13, 2008

Cost of gas: Blame the Chinese and Indians

Who said it? Liberal Leader Stephane Dion...
[Dion] said the surging global demand will only push oil costs even higher.

"It's unavoidable because of the people in China and India," he said.
Funny... I thought the price of gas was mainly the result of OPEC not increasing production, and the threats to production levels thanks to Islamic terrorism and instability due to Hugo Chavez's attempts at Socialism.

But there's another thing that will potentially push the cost of fuel even higher, that Mr. Dion convinently forgot to mention... his own carbon/gas tax idea.

UPDATE: National Post has a good editorial on the cabon tax idea... "A carbon tax that won't fly". The money quote...

"Denmark's carbon tax, introduced in the mid-1990s, succeeded in reducing carbon emissions -- but not in the way intended. All the carbon reductions came from shuttered factories and lost manufacturing jobs. While emissions fell 10%, manufacturing employment fell 25%. The reductions came at the expense of workers, not carbon producers."

Are you and your membership listening Buzz?

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6 Comments:

  • At Tue May 13, 10:28:00 AM EDT, Anonymous Anonymous said…

    Seems to me that both Canada and the USA are somewhat to blame as well, both have vast untapped oil reserves on-shore and off that they will not touch, both refuse to increase the amount of refiners in operation.
    But in Canada we also deal with huge taxes on our own resource at the pump, then they add on the GST to the total.
    We pay at least $2 more per gallon than the USA and it's all taxes.
    I traveled almost 15,000 KMs last yr to and from work, including shutdowns.
    Cars and fuel should be tax exempt, I see them as essential to many Canadians.

     
  • At Tue May 13, 12:15:00 PM EDT, Blogger Robert McClelland said…

    I thought the price of gas was mainly the result of OPEC not increasing production, and the threats to production levels thanks to Islamic terrorism and instability due to Hugo Chavez's attempts at Socialism.

    I don't doubt you do believe this silly nonsense.

    OPEC has no more capacity to increase production, Islamic terrorism is having a negligible effect on oil production and Venezuela--despite Chavez's "attempts at Socialism"--is pumping more oil out of the ground than it ever has.

    There are two main factors fueling the rise of oil and gasoline prices. The first is increasing demand as per economics 101 supply and demand dogma. Nobody in their right mind disputes this.

    The second major factor fueling the increase is investor speculation. Oil and gasoline are commodities and the price of any commodity is set by the commodities market.

     
  • At Tue May 13, 01:31:00 PM EDT, Blogger Robert McClelland said…

    manufacturing employment fell 25%.

    That's happening in Canada and the US without a carbon tax. So it's preposterous to claim that a carbon tax is responsible for it happening in Denmark.

     
  • At Tue May 13, 01:51:00 PM EDT, Blogger Christian Conservative said…

    Thanks for making this one easy Robert... if that's what's happening here without a carbon tax, just imagine the devistation a carbon tax would have on our manufacturing sector here!

    (by the way, it's not me who says the job losses in Denmark were caused by the carbon tax there... it was said by folks way smarter than me)

     
  • At Tue May 13, 02:25:00 PM EDT, Blogger Robert McClelland said…

    just imagine the devistation a carbon tax would have on our manufacturing sector here

    That would depend on how much the carbon tax is and how much of it is offset by lowering other taxes. If it is indeed a revenue neutral tax then its effect will be negligible. If it's effect is to raise the cost by a small fraction compared to the rise we've already seen in cost then the effect will be insignificant. The only way a carbon tax will be devastating is if it significantly raises the cost.

    it was said by folks way smarter than me

    The National Disgrace editors aren't even smarter than my dog.

     
  • At Tue May 13, 05:00:00 PM EDT, Blogger John M Reynolds said…

    Robert. Venezuela is an OPEC country. If they increased their production, then for you to be correct, one or more other OPEC countries reduced theirs. Out of curiosity, which was it/were they?

    You are correct that it is about supply and demand. Dion only mentioned the demand side, so Christian Conservative noted there is also a supply side. His noting instability also eludes to the speculation aspect of the price. You may disagree with his use of the word "mainly," but your comments do not suggest this. I am left wondering what your problem is with this post?

    Dion's carbon tax is designed to slow the economy. He suggested that the tax would grow with time, so as the economy recovers, it will be kept down by the growing carbon tax. I am interested though in your idea of other taxes being lowered. Did Dion suggest this, or are you just speculating?

     

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