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a look at the demand for SUVs (long)
Posted by MO [Email] (more from MO) on Tue, 22 Jul 2003 18:04:52
In Reply to: Re: You couldn't be more wrong, Sean H, Tue, 22 Jul 2003 11:07:22
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As Greg very correctly pointed out, increasing the gas tax places a greater burden on the poor, which makes it a bad way to reduce the number of SUVs on the road. If we want to reduce the number of SUVs, we must first look at why we want to do so, and then we can identify solutions.
Here are my thoughts...
1) Problem: SUVs are inefficient, which contributes to pollution.
Solution: tighten regulations on fuel efficiency. This will raise the cost of manufacturing SUVs and small trucks, and it will make them more expensive to purchase. To compensate, expand tax breaks for business uses to avoid placing a large burden on small business owners. At the same time, tighten tax regulations to prevent Joe Jones from taking the tax break on his new Cadillac SUV.
2) Problem: SUVs can be more dangerous to other drivers in an accident than smaller cars would be.
Solution: Part of the problem can be solved by tighter regulation of bumper and other reinforcement heights. The rest will remain "unsolved": people will have to trade off the (hopefully higher, under solution (1)) price of an SUV and the rollover risk against the crash-mass risk. That's free-market capitalism, and that's the way we do things in the US.
3) Problem: SUVs consume more gas, increasing our dependence on foreign oil, and costing us money.
Solution: Before looking for a solution, we have to verify that this is true, and I've never seen any proof. It would be a pretty complicated thing to calculate. How much money does our dependence on foreign oil cost us? That's a very subjective question. How much of that dependence is related to automobiles, versus heating oil, industrial uses, etc? Probably simpler to calculate that one. And then, at the end, subtract the taxes that we already pay on gasoline. If, indeed, our income tax dollars are subsidizing our gas prices, then I believe we should increase taxes on gas, but not before we can prove that this is the case.
In short, in the US we make decisions about our purchases by weighing perceived benefits against costs. Yes, I say "perceived" benefits...we are all irrational at times, and things like cosmetics, status, and irrational fears influence our decisions, and that's not something that's going to change. If you want to convince Joe Jones that he shouldn't buy an SUV, you have to (a) convince him that it will harm him in some way (such as ruining the air he breathes and thereby making him unhealthy) or (b) raise the cost, in which case, see item (1) above.
Costs and perceived benefits determine the demand for a product in a free-market economy. Mass-production manufacturers like Saab must produce to that demand to stay in business. That's what the 9-7 is all about.
I'm a bit disappointed that it's a body-on-frame, because I'm not convinced that it will ever handle as well as its competition, but maybe it will have something else to offer. I won't make judgment until I know more about it.
Matt
'99 9³
posted by 12.101.2...
Posts in this Thread:
- Saab 9-7, Sean H, Tue, 22 Jul 2003 08:06:41
- LET'S KILL THIS THREAD..., SaabUV Fan, Thu, 24 Jul 2003 13:23:15
- Re: Saab 9-7, Bart, Wed, 23 Jul 2003 09:14:18
- Be careful what you wish for SeanH..., Richard P., Tue, 22 Jul 2003 18:03:37
- So Sean H, after all that's said and done,, Ian Glenday , Tue, 22 Jul 2003 17:41:43
- SUV gives Saab a burst of energy, saabfan, Tue, 22 Jul 2003 15:03:01
- You're in for a pleasant surprise, Redmilk, Tue, 22 Jul 2003 08:20:47
- the dealers in my area can't wait for it..., Scott Paterson , Tue, 22 Jul 2003 12:07:33
- Re: pleasant surprise, we'll see!, BobS, Tue, 22 Jul 2003 10:57:36
- Dealers impressed?, phred, Tue, 22 Jul 2003 10:08:58
- Burlingame B&B and Dorito Brothers are..., Scott Paterson , Tue, 22 Jul 2003 12:09:27
- You couldn't be more wrong, Viggen Pilot, Tue, 22 Jul 2003 10:20:28
- Re: SUV=stationwagon, BobS, Tue, 22 Jul 2003 19:55:20
- Well Phred someone should explain to your wife >, ChipJ, Tue, 22 Jul 2003 18:31:42
- Re: You couldn't be more wrong, Sean H, Tue, 22 Jul 2003 11:07:22
- Why are you using internet?, JimS, Wed, 23 Jul 2003 22:30:17
- a look at the demand for SUVs (long), MO, Tue, 22 Jul 2003 18:04:52 <-- Viewing This Message
- Re: You couldn't be more wrong, Greg W, Tue, 22 Jul 2003 13:34:00
- What?, Sean H, Tue, 22 Jul 2003 13:49:37
- Re: You couldn't be more wrong, aizzo , Tue, 22 Jul 2003 12:39:32
- Re: You couldn't be more wrong - Long!, Sean H, Tue, 22 Jul 2003 13:19:50
- You cannot compare US to Europe on this point., Nathaniel, Tue, 22 Jul 2003 13:47:00
- Don't forget about TAXES, Viggen Pilot, Wed, 23 Jul 2003 04:47:37
- Yes I can!, Sean H, Tue, 22 Jul 2003 14:06:18
- Re: Yes I can!, Nathaniel, Tue, 22 Jul 2003 14:47:04
- this is a no-win argument, Scott R., Tue, 22 Jul 2003 14:17:59
- You mean that we're *not* yuppie professors??? n/m, RS , Wed, 23 Jul 2003 05:18:42
- Well said........, Viggen Pilot, Wed, 23 Jul 2003 04:50:20
- Nicely put... /nm, Nathaniel, Tue, 22 Jul 2003 14:50:51
- Re: this is a no-win argument, Sean H, Tue, 22 Jul 2003 14:23:44
- I'm ashamed too, but it's just a fact..., Scott Paterson , Tue, 22 Jul 2003 12:10:29
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