Oil Econ Follow-up
By Arnold Kling
Ketchup at a retail grocery store is $0.16 an ounce meaning it rings in at an impressive $20.48 a gallon, almost ten times what gas costs.
Gas is also cheaper than orange juice ($6.64 a gallon), Snapple ($10.32 a gallon); olive oil ($51.04 a gallon), eye drops ($995.84 a gallon) and nasal spray ($2,615.28 a gallon) according to figures from the Department of Labor, Consumer Price Index.
He links to Lynne Kiesling, among others, for economic analysis.
If the electorate thought the way I do, then President Bush would not get very far with his attacks on Senator Kerry for allegedly supporting a higher gasoline tax. I think that higher gas taxes would capture more revenue domestically and put less into the pockets of OPEC. It is a policy that deserves careful consideration.
For Discussion. Will the rise in the “OPEC tax” reduce U.S. economic growth significantly?