Re: [[carfree_cities] Bush's new oil ads]
- I saw a snippet of the ad on the BBC. As I recall it had a statement
something to the effect: "Kerry thinks that by raising the price of gasoline,
people will drive less." The intent is to paint Kerry as some sort of fool
with regard to basic economics. But I am a bit confused about the actual
point. I realise that there are elasticities involved here, and there may be
differences between short-term and long-term consumer reactions, but as far as
I know, when you raise prices, demand decreases.
Bush's new ads are very telling. Anyone see this oil one? Basically the ad
attacks Kerry saying he was for a new Gas Tax. In a sarcastic voice the ad
states "Kerry thinks we should drive less" and they show a bicycle go by
with a few people on it. The ad clearly indicates that limiting driving is
anti-American. The gap between what is discussed on this list and the
average American is massive. The dialog can't even get beyond limiting
driving as a good thing. sad.
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> I know, when you raise prices, demand decreases.Demand doesn't change --people would still want the same amount of gas at a
given price-- but the quantity demanded has decreased since the tax has raised
the price. A tax isn't payed for all by consumers, producers also pay some of
the cost, but since the demand for gas is very inelastic (in the short run),
consumers pay the cost of most of the tax.
Just a little econ in action.