Sunday, 22 May 2011

The problem with rubber meeting road

In general, high gas prices are a good thing, in that they partially internalize the externalities of driving. But in the middle of a recess... (ahem, recovery), they create a real problem--the people who can least afford them are hit particularly hard by them. I am glad that at least the payroll tax was cut, but it would have been better for the cut to have been targeted.

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