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Originally Posted by DGthe3
Well, its not the only reason. But I figure its the best way to try and convince members of this particular forum. If I was talking to a bunch of kids at university, I'd probably bring up the economic and environmental advantages of mass transit. Another group, I'd discuss the problems with importing foreign oil.
All in all, increased usage of good quality mass transit can coincide with just about anyone's interests.
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I'm sure there are advantages, but regardless the American people (the consumers in our national market) have shown they do not want to use public transportation. The options to use public transportation are there, however they haven't brought sufficient demand to justify building more and more mass transportation facilities.
Also, people seem to forget that the market changes to better suit consumer demand. If the day comes when oil is depleted (or gas prices simply become too high), then innovation and entrepreneurship will follow that doesn't require the need of oil.
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I had a long post explain it, then I cut it down to one line, lol.
Basically, what happens when supply goes down and demand goes up? Price usually skyrockets, right? Well, if prices get too high too fast it can have a disastrous effect. So raise it early and get people better prepared for when it really gets bad. And when it is bad, you can slow down the increase by gradually dropping the tax.
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Correct, but you must specify who the situation is disastrous for. In general, this inflation will lead people to become "hoarders." These hoarders will save their money and not spend as much, thus bringing down demand and lowering prices (deflation). The market will correct itself, given the time needed to do so. The free market tends to have the quickest fix, while implementing government interventions tend to stretch out that time period, assuming the interventions eventually work.