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Re: oil business and profits

Posted by Jost on August 20, 2006, at 12:16:22

In reply to Re: oil business and profits, posted by Dinah on August 20, 2006, at 11:14:57

The government, for example, subsidizes the building and maintaining of roads and highways, as Dinah points out.

This is very expensive, and certainly is done to support the low cost of the car as mode of transportation. I don't see how it can be argued that this isn't subsidizing the oil industry, among other things.

It subsidizes other industries, and puts in place negative incentives to, for example, engineer cars that get as much gas mileage as possible.

Moreover, the federal government gives little, and less over time, subsidy to any form of public transportation, especially, but not only, Amtrak. In Europe and Japan, and other countries trains are much faster, in better condition, etc. This, plus the price of oil, and of driving in general, creates an incentive structure that promotes use of public transportation elsewhere. But not here.

Do people want this? Yes. But did it have to evolve to the point where people want it and consider it so important and so highly preferable to drive cars? No.

Have you been in New York City lately? Try taking a cab from somewhere in midtown to somewhere else in midtown. Try taking a cab (ie a car) from someplace anywhere to someplace anywhere else, not in midtown-- ie in parts of town with less traffic. It's a nightmare, and has gotten very much worse in the 8-9 years I've lived here. The amount of gas used by people stalled in traffic jams, or blocked from passage a round double and triple parked cars is frightening to contemplate. Not to mention the daily rush-hour traffic jams on all the bridges, tunnels, streets going toward the outlets to suburbs. Try going across town on any of the crosstown streets through Central Park. (Only do this if you like sitting in traffic for ten-fifteen minutes to drive eight city blocks--or less than 1/2 mile.)

This is because it's politically impossible to restrict access by motor vehicles into the city. Which is not coincidentally linked to the subsidy of roads, and unwillingness of federal and state governments--also not unrelated-- to subsidize adequate subway service.

Try living here sometime and your view of the incentives for public vs. private transportation-- and it's clear relationship to the cheap price of gas-- may shift.

Jost


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