|
I understand that the Europeans always love to chime in about having always paid $7-8 per gallon, but there are a couple of reasons why I think that is a bogus argument:
1. In general, EU cars have lower displacement and better gas mileage. Therefore, they consume less. If I were in Europe gas would cost 2x but I would get 2x the mpg so the net effect would be 0 because I would probably be driving a 120d.
2. Most of the incremental cost is tax, which one could argue a portion goes back to the people. Whereas in the US I have always paid taxes but get very little benefit from them. In Europe, there are things like paid for medical coverage, paid for school, etc. In the US I have some benefit in roads and police, etc. but the % of tax that goes to those services is very small.
3. The European economy is built for $7-8 per gallon, whereas the US is not and has a tough time adjusting to radical changes in price.
|