Gas Costs: Are They Worth The Cost?

Pursuant to energy efficiency policies, controversy swirls as climate changes are experienced in the U.S. and around the globe. When energy efficiency steps are put into place, economic outlooks turn positive. Obama’s policymaking in this arena makes “critical investments in advanced vehicle and fuel technologies, public transit, and high speed rail” (United Press International). With new fuel efficiency standards that will improve fuel economy by 2025, and other initiatives that he enacted, “12 billion barrels of oil will be saved and American consumers will save $1.7 trillion at the pump, and greenhouse gas emission standards for commercial trucks, vans, and buses for are projected to save over 500 million barrels of oil and save vehicle owners and operators an estimated $50 billion in fuel costs” (United Press

No one enjoys paying high prices for gasoline in the United States. In fact when gasoline prices rise to levels above $3 and $4 dollars and even up to $5 a gallon it hurts the economy because it hurts consumers. This paper focuses on gasoline prices and how gasoline prices affect the way Americans drive their cars and trucks. Thesis: Notwithstanding the cynical view that gasoline distributors are manipulating prices to gouge consumers, the literature reflects that prices rise and fall in most cases primarily based on market-driven forces, and on problems with refineries. Moreover, when the government sets higher mileage standards for vehicles, it means cars go a lot farther on a gallon notwithstanding the price of that gallon of gasoline.

The most important financial problem we are facing today, nearly half of Americans point to energy and gas prices risen day by day or to the high cost of living and inflation. Other problems say a lack of money and low wages, healthcare costs or the cost of owning or renting a home. High gas prices must be forcing Americans to cut back in other ways. Higher gasoline prices mean that each of us will pay more, leaving less to spend on other goods and services. Higher gas prices have an effect on the broader economy.

In the article, “America’s Key to Freedom” by Carol Domblewski, it says, “…expense of automobiles and suggested that their price is too steep.” Also, in “Facts Along the Road,” it says, “The average cost of owning and operating a car is more than $8000 per year…In 2011, traffic congestion cost the US $121 billion.” Also, in the article, “Running off the Road,” it says, “The cost of owning a car averages $8,876 per year.” This is a lot of money spent just to keep a car. There are other ways to get to your destination. In the article, “Running off the Road,” it says, “Using public transit…allows people to enjoy…while they ride…new, tech-savvy businesses offer ways for people to avoid the costs and problems associated with owning a car in a big city…thriving car-sharing and carpooling systems…a whopping 3,500 commuters bundle up and bike to work along the city’s Midtown Greenway.” All these ways either reduce the amount of greenhouse gas emissions or they don’t emit greenhouse gases at all. Also, all these ways of transportation are cheaper than a car. In conclusion, cars cost a lot to watch after and there are other ways to get to the same destination without the use of all that

The cars we drive daily are quickly becoming more costly than ever before. Between the initial cost of an automobile, and the yearly cost of maintenance, car payment bills are skyrocketing. In the article, “Running off the Road,” by Grover Kingsley, it is stated that “The cost of owning a car averages $8,876 per year.” This yearly amount has become too expensive for many Americans to afford anymore. Due to this, fewer people are purchasing cars and less money is poured into the industry. This, in turn, is eliminating jobs as well as the future for automobiles. To conclude, the cost of a car is far too much compared to the benefits it offers Americans.

36. Review Figure 3.4. Suppose the government decided that, since gasoline is a necessity, its price should be legally capped at $1.30 per gallon. What do you anticipate would be the outcome in the gasoline market?

If you have a job where you drive, it may cause a decline in pay. A lot of companies can’t afford the increase in gas prices and to maintain your salary at the same time. A company in Texas that uses buses to tour colleges had to disdain business because of elevated gas prices. “Simmons and three colleagues travel from school to school in a 30-foot-long bus that gets 6 to 8 miles per gallon. “It eats out of our profits," he says, noting he has not raised prices to offset the higher fuel costs” (Hagenbaugh, 2008). With the economy plummeting and the sky rocketing gas prices everyone has to change when, where, and how they drive their vehicles.

SUVs, to plummet. In addition, the high gas prices made consumer’s focus shift to fuel efficient

According to Singers(Aug 24,2017), ITEP’S (July 2017), (July 2017), (Aug 2011), and(December 2011), higher sales and gas tax in Connecticut have consequences and a solution proposed to reduce tax burden on low income family. Based on the readings and my understanding of this topic, I conclude that increasing sales and gas taxes in Connecticut to fix a budget crisis will be financially harmful to low income families and needs to be addressed with the new policy. Singer(Aug 24,2017), pointed out that, Connecticut legislators are deciding to increase the sales tax from its current level to 6.85 percent to fix a budget deficit, estimated to reach $3.5 billion in two years and improve state aid to towns.

The topic of this paper is Gasoline prices and potentially high state sales tax. According to Stephen Singer’s article (2017, August 24); Connecticut legislators are deciding to raise state sales tax and gas prices from its current rate to 6.85% to close a budget gap that’s predicted to reach $3.5 billion over two years to help lower state aid cut to towns. I disagree with the decision the legislators of Connecticut are making to fix budget gap with higher taxes on retail products and gasoline prices because, increasing the prices of these products with higher taxes would “hurt consumers and would hurt retailers.” It would limit the amount of tax revenues generated by the tax and slow the economy activity. “A higher tax on the sale

It increases vehicle use. Because cars are expensive to own but cheap to drive, owners have the incentive to maximize their use. This increases external costs such as traffic congestion, facility costs, accidents and environmental impacts.

CAFÉ standards are averages that all automobile manufacturers must attain yearly, for the production of their vehicles, as of 1978. The elevation of these standards forces auto manufacturers to react by producing more fuel-efficient vehicles, which enhances the country’s energy protection and reduces refueling cost, thus retaining the consumers cash. This, in turn, lowers the greenhouse gas discharge

This leaves less money to pay for discretionary purchases that help fuel economic growth. It is estimated that every $1 increase in the price of gasoline translates into an additional cost of $1,000 a year for most drivers. As a result, low income households began to feel pressures from higher energy bills, which already affected negatively discounted retailers. Long term, the pain at the pump could become more widespread. A survey released in April by the Financial Services Forum, an association of the CEOs of 20 large U.S. financial institutions, reported its members’ view escalating energy prices as the biggest threat to U.S. economic growth, ahead of rising health-care costs and terrorism. The rise in gasoline also caused the fall in auto sales. Cars and light trucks were sold at an average 11.41 annual rate in June, the slowest in a year. (Chandra)

Recently, we found that “the oil price dropped a lot; one year ago, a barrel of Brent crude cost $110 and today it was merely $60, which resulted in 45% decrease in the oil price through economies. Not only did the oil price cut, the price of goods and services also dropped in the worldwide economy. When the price of goods and services declined, consumers would like to consume more and purchase more products, because they could pay less to get the same thing as before. And for firms, cheaper inputs lowered the cost of manufacturing goods, which resulted in the increase in the overall profit. What’s more, we all know that energy use (oil) is

If automakers adjust the price of their vehicles to down to entice more people to buy a new car demand may rise even with the ever rising price per gallon of gas. A new car for many may be a luxury item and not a necessity at this given time and if the prices of new cars rise you may see the demand drop. However; if people are still driving cars with poor MPG they may trade for an affordable fuel efficient model and the demand for these types of cars could increase and the price could rise marginally as well so that they were still considered affordable.