Bromleyisms: Politics

HILL DRIVE FOR '55'
May 24, 2006 In a surprise move yesterday, Sen. Hillary Rodham Clinton called for "most of the country" to return to a speed limit of 55 mph in an effort to slash fuel consumption. "The 55-mile speed limit really does lower gas usage. And wherever it can be required, and the people will accept it, we ought to do it," Clinton said at the National Press Club.

Yes, folks, this is all about politics, not just automobiles.

Funny how those who whine that tax cuts lead to deficits have no problem with the high cost of oil -- which leads to private deficits. Their solution, ironically -- not -- is to reduce consumption, which, they say, will lower prices.

Let's get this straight. They're saying that:

1) lower prices of gasoline leads to more consumption.
2) higher prices of gasoline leads to less consumption.

Replace "gasoline" with taxes, and, voilà, you're a Supply-Sider!

Raise taxes, and people will choose methods and behaviors that avoid taxes. Lower taxes, and they have an incentive to choose behavior that pays taxes. It's that simple.

Now, with the price of gasoline, it works the same way. Higher gasoline prices lead to avoidance of buying gasoline. Easy enough. But consider this: if conservation leads to lower gasoline consumption, then can we not say that lower consumption will lead to lower prices? If so, then conservation will lead to higher consumption, since lower prices will lead to greater demand.

And again, replace "price of gasoline" with "taxes" and the same revenue pattern results: higher taxes lead to lower consumption (taking taxable income) and lower taxes lead to higher consumption (taking taxable income).

Thank you, Hillary Clinton, Supply-Sider! I'm just glad she's running for national office, because what she's really calling for isn't a national speed limit, it's a national tax on gasoline -- which would be the only way to ensure high gasoline prices over the long term. (6/12 update: see Report: BP CEO Sees Long-Term Drop in Oil)

Now, if you can't get -- or accept -- that, you most certainly won't get this:

Rural highways get boost to 80 mph

Thank God for Texas. At least some of the time, and in this case, at 80 mph. As for how Hillary speaks to automobiles in all this, I'll send you to Jalopnik.com for its readers' reaction to Hill's "55" proposal:

Screw You, Hillary, We Don’t Back Your Double Nickels

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