What other products should be sold below market price?

[billwald]

Americans seem to think that gas & diesel fuel should be sold at less than market price. In some other countries, the govt subsidizes fuel. Should the govt subsidize our fuel price?

What other products should be subsidized?

Traditionally, the govt steals from the workers and gives to the producers. We pay 10 times world price for sugar. Why should we pay more for food and less for gas?

 

[TheNewWorldMan]

I think government subsidies for any standard commodity are bad economics. Countries that subsidize oil are going to really be hating life when Peak Oil comes in earnest and oil's passing $200 a barrel, because holding the price of gas at a fixed, artificially depressed level is going to get rather expensive.

High prices for scarce commodities encourage conservation of those commodities.

 

[platzapS]

I think government subsidies for any standard commodity are bad economics. Countries that subsidize oil are going to really be hating life when Peak Oil comes in earnest and oil's passing $200 a barrel, because holding the price of gas at a fixed, artificially depressed level is going to get rather expensive.

High prices for scarce commodities encourage conservation of those commodities.

I have to agree. And billwald, do you have a link to the sugar prices fact? That sounds really interesting.

 

[chaz345]

Americans seem to think that gas & diesel fuel should be sold at less than market price. In some other countries, the govt subsidizes fuel. Should the govt subsidize our fuel price?

What other products should be subsidized?

Traditionally, the govt steals from the workers and gives to the producers. We pay 10 times world price for sugar. Why should we pay more for food and less for gas?

Subsidizing something like fuel that has such a direct and dramatic impact on the price of so many other things can make sense strictly from a financial standpoint. The money spent on the subsidy may in fact be far less that what is saved through the lower prices on everything else. Having said that I still think it's a bad idea virtually always.

 

[FightTheLeft]

Subsidizing fuel will only increase demand.

 

[XTE]

I don't think subsidizing fuel was ever on the table as far as ANY politician goes. What a truly ridiculous idea outside of the Airline Industry, which we use as needed infrastructure. We pay for airlines for the same reason we pay for roads....

What we need to do is regulate the market and strap down the rampant speculation that has been going on since Bush and his cronies opened the gates to it 6 years ago.....

OP, did you start out hearing this tripe from someone else? I would like to know who that is, and do America a favor and tell them to be quiet if they try and pass it off as truly. It's so completely laughable, it's incredible!

 

[Anovah]

Americans seem to think that gas & diesel fuel should be sold at less than market price.

Which Americans out of curiosity? Quotes are especially helpful.

Also, if fuel was subsidized, I doubt companies like GM would be trying to build cars like this.