Tag Archives: subsidized gasoline

The Real Reason U.S. Gas Is So Cheap — We Don’t Pay the True Costs of Driving

I'm not in this line.

I’m not in this line.

Thought this was interesting — especially because I don’t think Americans generally realize how much the automobile – not just the gas but everything associated with them – is heavily subsidized by government, which means taxpayers, which means all of us.

Or it’s at least not top of mind. We are so used to the relatively low cost of gas, we just freak when it gets near $5 a gallon, not realizing that even that price, which seems outrageous, is really outrageously cheap!

I urge you to read it for the perspective, because we often don’t think about the externalities of things which in our economy are not often paid for. Or they’re paid for by someone else. And/or we all suffer for it.

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I’ve often thought that real folks who make out here, the real bandits, are the auto companies themselves — as they really do require paved roads for their products, which are fairly useless without them. How much do General Motors, Ford, Toyota, Daimler Chrysler and all the rest pay for road construction?

What’s that noise? Crickets?

 

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