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The Dartmouth
December 1, 2024 | Latest Issue
The Dartmouth

An Economics Lesson

To the Editor:

William Meland's humorous piece on fuel efficiency and the evils of the free market ("Five Bucks a Gallon," The Dartmouth, Jan. 16) provided me with many chuckles. However, the tax logic used in his argument needs a little adjustment. If our great national transportation system is funded by new and improved 3,000 percent increases in gas taxes, and this in turn lowers our fuel consumption and imports of oil, where do we get the tax cut? If we stop consuming so much fuel, where are the fuel tax revenues that fund the new transport systems? As less gas is used, more fees will have to be charged. So the government will fund our transportation, but where do they get the money? From taxes! So there won't be a tax break. Mr. Meland claims there will be free lunch for all thanks to more government regulation. It's a lovely little pipe dream.

Similarly, if we did create a massive national rail and bus system, where do you think the electricity to run it comes from? Our currently underutilized power grid? Welcome to more and more gas, coal, oil and nuclear power plants in everyone's backyard. I would recommend at least one term of basic macroeconomics prior to declaring tax increases, government spending and regulation will lead to tax breaks.