Welcome to Rye Country Day's Economic Blog. Here you will find perspectives by students taking Economics at Rye Country Day School. It is meant to be a forum where students can openly express their ideas and take positions on relevant economic issues. I urge everyone to participate in presenting their own ideas in an open manner so that we can all learn from each other. Regardless of whether you are currently taking Economics, everyone is invited and encouraged to comment on articles and get involved. Feel free to e-mail me, Alex Osborne at firstname.lastname@example.org , with comments or suggestions.
Monday, December 11, 2006
Featured Entry - The Benefits of Raising Gas Prices
CBS market watch today reported an unhappy future for gasoline prices worldwide. As hinted at in the article appearing on the last test, natural gas production is going to be cut by OPEC countries (based on the belief that it is a highly elastic market). This will raise gas prices again, though probably not to the same levels we saw this summer. However (and I can say this now that I have to pay for gas) I don't think higher gas prices are such a bad idea. In fact, the American government should follow Europe's lead (perhaps looking to Great Britain as a prime example) and raise prices drastically through taxes. Not only would that promote changing in driving patterns, it would also raise much needed money for the government that could go to social programs, education, and, perhaps, researching alternative energy sources.