Originally Posted by
Blackpaw
This statement is not true. I saw a study about two years ago where they stripped taxes from all of the Western countries, i.e. Canada, Uk, France, Germany & etc, and the US was #-3 for the most expensive gas. Remember the other western countries gas is loaded taxes, that is why California's gasoline is more than other parts of the country. US consumer's gasoline is NOT subsidized! Shit I wish it was, we just don't have as many taxes in our gasoline, plus the US dollar's value is in the shitter.
God, why do so many people talk out of their ass??? First of all, look at this link
http://en.wikipedia.org/wiki/Gasoline_usage_and_pricing and please tell me again that the US is one of the most expensive parts of the world for fuel. Secondly, restrictions on taxes IS a form of subsidy, not to mention all the other deal making that goes on in the background that most people are oblivious to that results in cheap gas for the US.
There are many reasons why the US would want to subsidize gasoline and keep prices relatively low. One very basic reason is the fact that part of the massive US expansion over the past few decades has been driven by home ownership, requiring cheap and abundant real estate otherwise known as suburbia. That required massive buildout of infrastructure for cars since the US relied on the manufacturing of said cars as a major contributor to GDP. But to make the whole thing work, gas needs to be cheap enough to enable everybody to enjoy their Hummers while travelling 200mi to and from work every day. And I'm not going to even touch how everybody then started borrowing against the equity on their home to do renos and buy new cars because that's another story...though not really.
This is a very simplistic illustration of a very big and complex problem but it does highlight part of the trajectory toward "high fuel prices". Unfortunately, an artificially catalized economy can only last for so long before reality hits and people have to pay up. Economics 101, lesson 1: There is no such thing as a free lunch.
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