If he knew anything about economics, he'd realize that suspending the tax on gas will do nothing to actually lower the price. In the aggregate, demand will increase just enough to return the price of gas to its market value. The only difference is that the money that was previously being collected by the state government (to pay for roads, bridges, hurricaine relief, etc.) will now go to the gas companies who are already making staggering record profits.
Someone who understands economics...how refreshing.
Thank you for posting this.
The Governor is right and your assumption is wrong. you missed the big point. If the "record profit" gas company can make more money in GA then there will be much more supply in GA. The problems of shortages will be in the surrounding states, until they cut there taxes.
In economics the golden rule is there is no good tax. Just some are not as bad as others.
yeah.. but when is he up for re-election? people WILL remember this tactic. i agree that it'll only help for a day or so, but people will think to themselves "the gov. pulled taxes to help us. we love him! he's a friend to the people! re-elect!"
and maybe if people see how little it helped they'll demand more drilling and refineries.
If your logic were correct, then the government should double or triple the gas tax because it would mean more revenue but wouldn't, as you said, change the price. (yeah, right!)
Where did you get your econ degree, btw?
If he knew anything about economics....(to pay for roads, bridges, hurricaine relief, etc.) will now go to the gas companies who are already making staggering record profits.
Thanks for wandering over from DU and spewing complete NONSENSE. Basic econ lesson for you since you are so totally ignorant of ANY understanding of SIMPLE economic laws. ANY time you REDUCE the cost of your goods, you INCREASE the sales as long as you have approximately the SAME quality good and a constant or raising demand curve. IF the Gas Companies can sell gas with OUT having to serve as the tax collector, they can SELL at a lower price then their competitors and MAKE MORE PROFIT. If I sell 100 gallons of gas at $3.50 and then sell sell 150 gallons at $2.50 where do I make the most profit? When the lower price causes a slack in demand for the competitors they have to reduce price to stay competitive. Do the math and go back to your hole. The reason the gas companies are posting "RECORD PROFITS" is they are selling ALL THEY CAN. It's called Supply and Demand. The prices are a result of TOO MUCH DEMAND and TOO LITTLE SUPPLY. Go look it up in your Internet search engine before you have the arrogance to come back here an lecture ANYONE on Economics.