Gas Tax Holiday a Vacation from Market Realities
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Presidential hopefuls McCain and Clinton are both suggesting we take a summer vacation from collecting the federal tax on gasoline. Obama is coming the closest of all the major candidates to just putting it out there — China & India are now crazy about cars, just as we are, the world only has so much oil and the refineries can only convert oil to gas so fast.
We’ve spent nearly a century investing in infrastructure that only works when oil is cheap. Now that most Americans live in auto-dependent suburbia the world market rules have shifted. This is our new reality. There is no good short term solution. The long term solution is invest in different transit systems that move people more efficiently. Of course we are so spread out now that becomes increasingly costly.
Government is going to have to make some tough decisions. In the St. Louis region, for example, we need to rethink the idea of MetroLink being a regional system. I don’t think we can afford to build enough lines to encompass our region. We need to think at the local street level — how can mass transit get the average Joe to work, to the store and so on. We also need to think about goods — where do they come from, can we ship them more efficiently and better yet can we produce that same good locally for less?
We are in the midst of the reality we created for ourselves. No summer vacation from the gas tax is going to change that.