Comments on: An idea to create real fuel cost certainty http://michiganwllz.com/2009/10/an-idea-to-create-real-fuel-cost-certainty/ Love cars? Love travel? Then you're in the right place Wed, 03 Feb 2010 03:56:54 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Steve Morton http://michiganwllz.com/2009/10/an-idea-to-create-real-fuel-cost-certainty/comment-page-1/#comment-263 Steve Morton Wed, 28 Oct 2009 09:36:10 +0000 http://michiganwllz.com/?p=1695#comment-263 I only heard the plan discussed briefly like 5 years ago. I think the gas surcharge would ensure basic coverage is bought. You would still choose your company and how much additional coverage you wanted. I mostly like how both plans get people to stop cheating so much. I only heard the plan discussed briefly like 5 years ago. I think the gas surcharge would ensure basic coverage is bought. You would still choose your company and how much additional coverage you wanted. I mostly like how both plans get people to stop cheating so much.

]]> By: Bryan Laviolette http://michiganwllz.com/2009/10/an-idea-to-create-real-fuel-cost-certainty/comment-page-1/#comment-262 Bryan Laviolette Tue, 27 Oct 2009 19:41:10 +0000 http://michiganwllz.com/?p=1695#comment-262 I like the idea of paying for insurance at the pump, but I have some concerns. Seems that it could eliminate competition in the insurance industry. Would everyone have the same level of insurance or could the high rollers still protect themselves with more insurance? I like the idea of paying for insurance at the pump, but I have some concerns. Seems that it could eliminate competition in the insurance industry. Would everyone have the same level of insurance or could the high rollers still protect themselves with more insurance?

]]> By: Steve Morton http://michiganwllz.com/2009/10/an-idea-to-create-real-fuel-cost-certainty/comment-page-1/#comment-260 Steve Morton Tue, 27 Oct 2009 13:01:13 +0000 http://michiganwllz.com/?p=1695#comment-260 I'd like to see a push to all forms of saving gas. A debit card to taxpayers would give you the money back maybe starting at a value of 50 bucks to cover the dollar boost per gallon surcharge (maybe a little more than a buck but keep it under a total of 4 bucks a gallon total price to start). Then you would get monthly additions to the card based on how many gallons you bought (kept track of on a gas card maybe). If you start using less gas, the program would pay you on the debit card the previous higher amounts for maybe 6 months to a year (as an incentive to save gas). This might cost the government money. But you would have non-taxpayers still buying gas and paying into the system. You could also decrease the reimbursement on debit cards at maybe 5 to 10 cents a gallon a year to ease the shock of a higher gas price. What do you think of paying your car insurance through the pump so that everyone would pay for the insurance they're supposed to have? (and not drive uninsured like so many today which raises our rates in effect) I’d like to see a push to all forms of saving gas. A debit card to taxpayers would give you the money back maybe starting at a value of 50 bucks to cover the dollar boost per gallon surcharge (maybe a little more than a buck but keep it under a total of 4 bucks a gallon total price to start). Then you would get monthly additions to the card based on how many gallons you bought (kept track of on a gas card maybe). If you start using less gas, the program would pay you on the debit card the previous higher amounts for maybe 6 months to a year (as an incentive to save gas). This might cost the government money. But you would have non-taxpayers still buying gas and paying into the system. You could also decrease the reimbursement on debit cards at maybe 5 to 10 cents a gallon a year to ease the shock of a higher gas price. What do you think of paying your car insurance through the pump so that everyone would pay for the insurance they’re supposed to have? (and not drive uninsured like so many today which raises our rates in effect)

]]> By: Bryan Laviolette http://michiganwllz.com/2009/10/an-idea-to-create-real-fuel-cost-certainty/comment-page-1/#comment-255 Bryan Laviolette Fri, 23 Oct 2009 16:59:05 +0000 http://michiganwllz.com/?p=1695#comment-255 If we are only concerned about pushing drivers to electrics, then the answer is a straight carbon tax. Introduce it incrementally, say 25 cents a year for the next four years, and that would certainly drive interest in electrics. But it would be even quicker political suicide than my plan. My issue is that I don't care to give the government any more of my money. I might be willing to give them something if there was a mechanism for me to get it back. One person at the conference said something to me that I found very interesting. It wasn't the high price of gas that upset people, it was the rapid change in the price. If we are only concerned about pushing drivers to electrics, then the answer is a straight carbon tax. Introduce it incrementally, say 25 cents a year for the next four years, and that would certainly drive interest in electrics. But it would be even quicker political suicide than my plan. My issue is that I don’t care to give the government any more of my money. I might be willing to give them something if there was a mechanism for me to get it back.
One person at the conference said something to me that I found very interesting. It wasn’t the high price of gas that upset people, it was the rapid change in the price.

]]> By: Steve Morton http://michiganwllz.com/2009/10/an-idea-to-create-real-fuel-cost-certainty/comment-page-1/#comment-250 Steve Morton Fri, 23 Oct 2009 10:39:54 +0000 http://michiganwllz.com/?p=1695#comment-250 The spikes, though painful, help the electric car development and purchase. It's the drops you're worried about. My revenue neutral idea keeps the price of gas high and only helps those who work to save gas. In reality, it all has about as much chance of becoming reality as Al Gore's lock box. The spikes, though painful, help the electric car development and purchase. It’s the drops you’re worried about. My revenue neutral idea keeps the price of gas high and only helps those who work to save gas. In reality, it all has about as much chance of becoming reality as Al Gore’s lock box.

]]> By: Bryan Laviolette http://michiganwllz.com/2009/10/an-idea-to-create-real-fuel-cost-certainty/comment-page-1/#comment-249 Bryan Laviolette Thu, 22 Oct 2009 22:54:25 +0000 http://michiganwllz.com/?p=1695#comment-249 Hitch, Yes it would be complicated by the realities of our capitalistic society and the interest to make as much profit as possible. The issues you raised could be solved with regulation. I used to argue with my father-in-law all the time about capitalism. What he refused to acknowledge was our system is not straight capitalism. Regulation rules our economy and such rules and laws could be used to regulate this plan. As for politicians not being able to keep their mitts out of the cash, that problem is exactly the problem that I say will kill it. Our politicians do not have the fortitude to set up something like what I have suggested. But that uncertainty could kill the fledgling electric vehicle industry. These companies are investing hundreds of millions of dollars in this technology. Consumers have to have an incentive to convert to this technology, which will be more expensive up front, but less costly in the long run because of lower operating costs. OK, if you don't like my idea, suggest a better one. Hitch, Yes it would be complicated by the realities of our capitalistic society and the interest to make as much profit as possible. The issues you raised could be solved with regulation. I used to argue with my father-in-law all the time about capitalism. What he refused to acknowledge was our system is not straight capitalism. Regulation rules our economy and such rules and laws could be used to regulate this plan.
As for politicians not being able to keep their mitts out of the cash, that problem is exactly the problem that I say will kill it. Our politicians do not have the fortitude to set up something like what I have suggested.
But that uncertainty could kill the fledgling electric vehicle industry. These companies are investing hundreds of millions of dollars in this technology. Consumers have to have an incentive to convert to this technology, which will be more expensive up front, but less costly in the long run because of lower operating costs.
OK, if you don’t like my idea, suggest a better one.

]]> By: jehitch http://michiganwllz.com/2009/10/an-idea-to-create-real-fuel-cost-certainty/comment-page-1/#comment-248 jehitch Thu, 22 Oct 2009 19:20:46 +0000 http://michiganwllz.com/?p=1695#comment-248 Bryan, any time you start messing with the laws of supply and demand, you have to watch out for unintended consequences, and human nature. When you say "... the price of gasoline jumps to $4.25 per gallon. The board would use proceeds from previous low points in the market to pay to reduce the price back to the target of $3.50." I can see a couple problems: 1. Politicians are loathe to leave money lying around for a future purpose. It would take political willpower well beyond what I've seen demonstrated to not find uses for that money now, and hold it in escrow until prices spike. 2a. If commodities traders received the "proceeds from previous low points in the market" to pay the price back down to the target, they could foreseeably find ways to drive the price as high as possible to take advantage of the artificial price supports available. That's what happened in Calfornia's electricity crisis a few years back. The taxes collected during low-priced gas would quickly be exhausted, and the system would either collapse, or have to start drawing price support funding from general tax revenues. 2b. If consumers received the "proceeds from previous low points in the market" used to pay the price back down to the target, they would rapidly grow used to $3.50/gallon gas and lose much of the incentive to conserve fuel that higher prices provide. Bryan, any time you start messing with the laws of supply and demand, you have to watch out for unintended consequences, and human nature. When you say “… the price of gasoline jumps to $4.25 per gallon. The board would use proceeds from previous low points in the market to pay to reduce the price back to the target of $3.50.” I can see a couple problems:

1. Politicians are loathe to leave money lying around for a future purpose. It would take political willpower well beyond what I’ve seen demonstrated to not find uses for that money now, and hold it in escrow until prices spike.

2a. If commodities traders received the “proceeds from previous low points in the market” to pay the price back down to the target, they could foreseeably find ways to drive the price as high as possible to take advantage of the artificial price supports available. That’s what happened in Calfornia’s electricity crisis a few years back. The taxes collected during low-priced gas would quickly be exhausted, and the system would either collapse, or have to start drawing price support funding from general tax revenues.

2b. If consumers received the “proceeds from previous low points in the market” used to pay the price back down to the target, they would rapidly grow used to $3.50/gallon gas and lose much of the incentive to conserve fuel that higher prices provide.

]]> By: Bryan Laviolette http://michiganwllz.com/2009/10/an-idea-to-create-real-fuel-cost-certainty/comment-page-1/#comment-245 Bryan Laviolette Thu, 22 Oct 2009 12:21:14 +0000 http://michiganwllz.com/?p=1695#comment-245 But my plan has protection from price spikes. It would not be revenue neutral because increasing the price we pay for fuel will drive interest in green technology, which is expensive. So what to do with the extra money? Maybe the money could go for electric vehicle development or road improvements, particularly smart road technology. But my plan has protection from price spikes. It would not be revenue neutral because increasing the price we pay for fuel will drive interest in green technology, which is expensive. So what to do with the extra money? Maybe the money could go for electric vehicle development or road improvements, particularly smart road technology.

]]> By: Steve Morton http://michiganwllz.com/2009/10/an-idea-to-create-real-fuel-cost-certainty/comment-page-1/#comment-243 Steve Morton Thu, 22 Oct 2009 12:06:42 +0000 http://michiganwllz.com/?p=1695#comment-243 Good plan. What could help would be to make it revenue neutral and give the money pack to taxpayers through debit cards. Then if you saved gas, you could use the debit card for other things. Of course, there would be no help if prices spiked up. I have heard the idea of paying all if not nearly all of auto insurance costs through a gasoline surcharge. This would make it near impossible for people to drive without insurance like so many do now. I'm for both plans. Keep up the good work. Good plan. What could help would be to make it revenue neutral and give the money pack to taxpayers through debit cards. Then if you saved gas, you could use the debit card for other things. Of course, there would be no help if prices spiked up. I have heard the idea of paying all if not nearly all of auto insurance costs through a gasoline surcharge. This would make it near impossible for people to drive without insurance like so many do now. I’m for both plans. Keep up the good work.

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